Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 01, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Fortune Brands Home & Security, Inc. | ||
Entity Central Index Key | 1,519,751 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7,606,348,311 | ||
Trading Symbol | FBHS | ||
Entity Common Stock, Shares Outstanding | 140,549,295 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
NET SALES | [1] | $ 5,485.1 | $ 5,283.3 | $ 4,984.9 | |
Cost of products sold | 3,525.7 | 3,358.3 | 3,188.8 | ||
Selling, general and administrative expenses | 1,241.4 | 1,196.9 | 1,135.5 | ||
Amortization of intangible assets | 36.1 | 31.7 | 28.1 | ||
Loss on sale of product line (see Note 4) | 2.4 | ||||
Asset impairment charges | 62.6 | 3.2 | |||
Restructuring charges | 24.1 | 8.3 | 13.9 | [2] | |
OPERATING INCOME | 595.2 | 682.5 | 618.6 | ||
Interest expense | 74.5 | 49.4 | 49.1 | ||
Other income, net | (16.3) | (1.7) | (12.6) | ||
Income from continuing operations before income taxes | 537 | 634.8 | 582.1 | ||
Income taxes | 147 | 159.5 | 169.7 | ||
Income from continuing operations, net of tax | 390 | 475.3 | 412.4 | ||
(Loss) income from discontinued operations, net of tax | (0.2) | (2.6) | 0.8 | ||
NET INCOME | 389.8 | 472.7 | 413.2 | ||
Less: Noncontrolling interests | 0.2 | 0.1 | |||
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 389.6 | $ 472.6 | $ 413.2 | ||
BASIC EARNINGS (LOSS) PER COMMON SHARE | |||||
Continuing operations | $ 2.69 | $ 3.10 | $ 2.67 | ||
Discontinuing operations | (0.02) | 0.01 | |||
Net income attributable to Fortune Brands common shareholders | 2.69 | 3.08 | 2.68 | ||
DILUTED EARNINGS (LOSS) PER COMMON SHARE | |||||
Continuing operations | 2.66 | 3.05 | 2.61 | ||
Discontinuing operations | (0.02) | 0.01 | |||
Net income attributable to Fortune Brands common shareholders | $ 2.66 | $ 3.03 | $ 2.62 | ||
Basic average number of shares outstanding | 144.6 | 153.2 | 154.3 | ||
Diluted average number of shares outstanding | 146.4 | 155.8 | 157.8 | ||
[1] | Based on country of destination | ||||
[2] | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
NET INCOME | $ 389.8 | $ 472.7 | $ 413.2 | |
Other comprehensive (loss) income, before tax: | ||||
Foreign currency translation adjustments | (31.1) | 33.8 | (14.7) | |
Unrealized (losses) gains on derivatives: | ||||
Unrealized holding gains (losses) arising during period | 10.1 | (1.8) | (6.7) | |
Less: reclassification adjustment for (gains) losses included in net income | (2.1) | (0.9) | 3.5 | |
Unrealized gains (losses) on derivatives | 8 | (2.7) | (3.2) | |
Defined benefit plans: | ||||
Prior service credit (cost) arising during period | 12.1 | |||
Prior service credit (cost) recognition due to settlement and curtailment | 0.1 | |||
Net actuarial (loss) gains arising during period | (4.2) | 6.2 | (1.9) | |
Less: amortization of prior service credit included in net periodic pension cost | (5.1) | (13.5) | ||
Defined benefit plans | (4.2) | 1.1 | (3.2) | |
Other comprehensive (loss) income, before tax | (27.3) | 32.2 | (21.1) | |
Income tax (expense) benefit related to items of other comprehensive income | [1] | (0.5) | 0.5 | 1.7 |
Other comprehensive (loss) income, net of tax | (27.8) | 32.7 | (19.4) | |
COMPREHENSIVE INCOME | 362 | 505.4 | 393.8 | |
Less: comprehensive income attributable to noncontrolling interest | 0.2 | |||
COMPREHENSIVE INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 361.8 | $ 505.4 | $ 393.8 | |
[1] | Income tax benefit (expense) benefit on unrealized (losses) gains on derivatives of $(1.4) million, $0.9 million and $0.5 million and on defined benefit plans of $0.9 million, $(0.4) million and $1.2 million in 2018, 2017 and 2016, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized (losses) gains on derivatives, tax | $ (1.4) | $ 0.9 | $ 0.5 |
Defined benefit plans, tax | $ 0.9 | $ (0.4) | $ 1.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current assets | ||||
Cash and cash equivalents | $ 262.9 | $ 323 | ||
Accounts receivable less allowances for discounts and doubtful accounts | 571.7 | 555.3 | ||
Inventories | 678.9 | [1] | 580.8 | |
Other current assets | 172.6 | 142.6 | ||
TOTAL CURRENT ASSETS | 1,686.1 | 1,601.7 | ||
Property, plant and equipment, net of accumulated depreciation | 813.4 | [1] | 740 | |
Goodwill | [2] | 2,080.3 | 1,912 | |
Other intangible assets, net of accumulated amortization | 1,246.8 | 1,162.4 | ||
Other assets | 138 | 95.3 | ||
TOTAL ASSETS | 5,964.6 | 5,511.4 | ||
Current liabilities | ||||
Short-term debt | 525 | |||
Accounts payable | 459 | 428.8 | ||
Other current liabilities | 508.1 | [1] | 478 | |
TOTAL CURRENT LIABILITIES | 1,492.1 | 906.8 | ||
Long-term debt | 1,809 | 1,507.6 | ||
Deferred income taxes | 162.6 | 166.8 | ||
Accrued defined benefit plans | 163.3 | 175.9 | ||
Other non-current liabilities | 157.6 | 153.2 | ||
TOTAL LIABILITIES | 3,784.6 | 2,910.3 | ||
Commitments (Note 18) and Contingencies (Note 23) | ||||
Equity | ||||
Common stock | [3] | 1.8 | 1.7 | |
Paid-in capital | 2,766 | 2,724.9 | ||
Accumulated other comprehensive loss | (67) | (39.2) | ||
Retained earnings | 1,448.1 | 1,174.2 | ||
Treasury stock | (1,970.7) | (1,262.1) | ||
TOTAL FORTUNE BRANDS EQUITY | 2,178.2 | 2,599.5 | ||
Noncontrolling interests | 1.8 | 1.6 | ||
TOTAL EQUITY | 2,180 | 2,601.1 | ||
TOTAL LIABILITIES AND EQUITY | $ 5,964.6 | $ 5,511.4 | ||
[1] | 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. | |||
[2] | Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. | |||
[3] | Common stock, par value $0.01 per share, 180.6 million shares and 179.8 million shares issued at December 31, 2018 and 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 180.6 | 179.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
OPERATING ACTIVITIES | ||||
Net income | $ 389.8 | $ 472.7 | $ 413.2 | |
Non-cash expense (income): | ||||
Depreciation | 113.5 | 98.6 | 94.6 | |
Amortization of intangibles | 36.1 | 31.7 | 28.1 | |
Stock-based compensation | 36.1 | 43 | 32 | |
Restructuring charges | (0.1) | |||
Loss on sale of property, plant and equipment | 1.2 | 0.9 | 1.2 | |
Loss on sale of product line | 2.4 | |||
Asset impairment charges | 62.6 | 15.3 | ||
Recognition of actuarial losses (gains) | 3.8 | (0.5) | 1.9 | |
Deferred taxes | 2.8 | (18.7) | (25.8) | |
Amortization of deferred financing costs | 2.3 | 2 | 3.6 | |
Changes in assets and liabilities including effects subsequent to acquisitions | ||||
Decrease (increase) in accounts receivable | 9.8 | 1 | (39.1) | |
(Increase) decrease in inventories | (55) | (24.8) | 52.4 | |
Increase in accounts payable | 21 | 24 | 57.6 | |
(Increase) decrease in other assets | (24.7) | (28.3) | 10.7 | |
Increase (decrease) in accrued taxes | 9.5 | (24.4) | 0.3 | |
(Decrease) increase in accrued expenses and other liabilities | (4.8) | 5.4 | 19.9 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 604 | 600.3 | 650.5 | |
INVESTING ACTIVITIES | ||||
Capital expenditures | [1] | (150.1) | (165) | (149.3) |
Proceeds from the disposition of assets | 6.1 | 0.4 | 3.9 | |
Proceeds from sale of product line | 1.5 | |||
Cost of acquisitions, net of cash acquired | (465.6) | (124.6) | (239.7) | |
Cost of investments in equity securities | (28.7) | |||
Other investing activities, net | 4 | |||
NET CASH USED IN INVESTING ACTIVITIES | (634.3) | (287.7) | (385.1) | |
FINANCING ACTIVITIES | ||||
Increase in short-term debt | 525 | (1.1) | ||
Issuance of long-term debt | 2,191.2 | 640 | 1,065 | |
Repayment of long-term debt | (1,890) | (565) | (805) | |
Proceeds from the exercise of stock options | 4.9 | 28.5 | 25.5 | |
Employee withholding taxes paid related to stock-based compensation | (14) | (10.6) | (10.1) | |
Deferred acquisition payments | (13.1) | (17.9) | ||
Dividends to stockholders | (115.2) | (110.3) | (98.2) | |
Treasury stock purchases | (694.6) | (214.8) | (424.5) | |
Other financing activities, net | (1) | (2) | ||
NET CASH USED IN FINANCING ACTIVITIES | (6.8) | (250.1) | (250.4) | |
Effect of foreign exchange rate changes on cash | (15.2) | 9 | (2) | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (52.3) | 71.5 | 13 | |
Cash, cash equivalents and restricted cash at beginning of year | [2] | 323 | 251.5 | 238.5 |
Cash, cash equivalents and restricted cash at end of year | [2] | 270.7 | 323 | 251.5 |
Cash paid during the year for | ||||
Interest | 63.4 | 44.4 | 43.7 | |
Income taxes paid directly to taxing authorities | 114.2 | 169.7 | 172.1 | |
Income taxes (received from) paid to Fortune Brands, Inc. | (0.6) | |||
Dividends declared but not paid | $ 30.9 | $ 30.4 | $ 27.6 | |
[1] | Capital expenditures of $16.7 million, $17.2 million and $11.9 million that have not been paid as of December 31, 2018, 2017 and 2016, respectively, were excluded from the Statement of Cash Flows. | |||
[2] | Restricted cash of $0.9 and $6.9 million is included in Other current assets and Other assets, respectively, as of December 31, 2018 within our Consolidated Balance Sheet. There was no restricted cash as of December 31, 2017. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital expenditures incurred but not yet paid | $ 16.7 | $ 17.2 | $ 11.9 |
Restricted Cash | $ 0 | $ 0 | |
Other Current Assets [Member] | |||
Restricted Cash | 0.9 | ||
Other Assets [Member] | |||
Restricted Cash | $ 6.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock | Non- controlling Interests |
Beginning Balance at Dec. 31, 2015 | $ 2,453.8 | $ 1.7 | $ 2,602.2 | $ (52.5) | $ 501.6 | $ (602.1) | $ 2.9 |
Comprehensive income: | |||||||
Net income | 413.2 | 413.2 | |||||
Other comprehensive income (loss) | (19.4) | (19.4) | |||||
Stock options exercised | 25.5 | 25.5 | |||||
Stock-based compensation | 21.9 | 32 | (10.1) | ||||
Treasury stock purchase | (424.5) | (424.5) | |||||
Dividends | (100.2) | (100.2) | |||||
Dividends paid to noncontrolling interests | (1.4) | (1.4) | |||||
Other (See Note 10) | (5.9) | (5.9) | |||||
Ending Balance at Dec. 31, 2016 | 2,363 | 1.7 | 2,653.8 | (71.9) | 814.6 | (1,036.7) | 1.5 |
Comprehensive income: | |||||||
Net income | 472.7 | 472.6 | 0.1 | ||||
Other comprehensive income (loss) | 32.7 | 32.7 | |||||
Stock options exercised | 28.5 | 28.5 | |||||
Stock-based compensation | 32 | 42.6 | (10.6) | ||||
Treasury stock purchase | (214.8) | (214.8) | |||||
Dividends | (113) | (113) | |||||
Ending Balance at Dec. 31, 2017 | 2,601.1 | 1.7 | 2,724.9 | (39.2) | 1,174.2 | (1,262.1) | 1.6 |
Comprehensive income: | |||||||
Net income | 389.8 | 389.6 | 0.2 | ||||
Other comprehensive income (loss) | (27.8) | (27.8) | |||||
Stock options exercised | 5.1 | 0.1 | 5 | ||||
Stock-based compensation | 22.1 | 36.1 | (14) | ||||
Treasury stock purchase | (694.6) | (694.6) | |||||
Dividends | (115.7) | (115.7) | |||||
Ending Balance at Dec. 31, 2018 | $ 2,180 | $ 1.8 | $ 2,766 | $ (67) | $ 1,448.1 | $ (1,970.7) | $ 1.8 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends per Common share | $ 0.82 | $ 0.74 | $ 0.66 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Background and Basis of Presentation | 1. Background and Basis of Presentation The Company is a leading home and security products company with a portfolio of leading branded products used for residential home repair, remodeling, new construction and security applications. References to “Fortune Brands,” “the Company,” “we,” “our” and “us” refer to Fortune Brands Home & Security, Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires. Basis of Presentation 10-K year-end year-end In September 2018, we acquired 100% of membership interests of Fiber Composites LLC (“Fiberon”), a leading U.S. manufacturer of outdoor performance materials used in decking, railing and fencing products for a total purchase price of approximately $470.0 million, subject to certain post-closing adjustments. The acquisition of Fiberon provides category expansion and product extension opportunities into the outdoor living space for our Doors & Security segment. The financial results were included in the Company’s consolidated balance sheet as of December 31, 2018 and in the Company’s consolidated statements of income and statements of cash flow beginning in September 2018. In July 2018, we publicly announced an internal reorganization to combine our Doors & Security segments under common leadership to drive innovation, accelerate product development, and enhance investments and business processes. In connection with the reorganization, we changed how our chief operating decision maker evaluates and allocates the resources for the combined business. Reporting for the new Doors & Security segment began in the third quarter of 2018 and historical financial segment information has been restated to conform to the new segment presentation. In October 2017, we acquired Victoria + Albert, a UK-based UK-based In September 2016, we acquired ROHL LLC (“ROHL”) and in a related transaction, we acquired TCL Manufacturing which gave us ownership of Perrin & Rowe Limited (“Perrin & Rowe”), and in May 2016, we acquired Riobel Inc (“Riobel”). The financial results of ROHL, Perrin & Rowe and Riobel were included in the Company’s consolidated balance sheets as of December 31, 2018 and 2017, and in the Company’s consolidated statements of income and statements of cash flow beginning in September 2016 and May 2016, respectively. The cash flows from discontinued operations for 2018, 2017 and 2016 were not separately classified on the accompanying consolidated statements of cash flows. Information on Business Segments was revised to exclude these discontinued operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | 2. Significant Accounting Policies Use of Estimates Cash and Cash Equivalents Allowances for Doubtful Accounts Inventories first-in, first-out During the fourth quarter of 2018, we determined that it was preferable to change our accounting policy from last-in, first-out Property, Plant and Equipment Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years Long-lived Assets During 2017, we recorded an impairment of $5.1 million related to a long lived asset to be disposed of in selling, general and administrative expenses. Goodwill and Indefinite-lived Intangible Assets We evaluate the recoverability of goodwill using a weighting of the income (80%) and market (20%) approaches. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates, and then discounting the future cash flows at a market-participant-derived discount rate. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our projection for the U.S. home products market is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine each reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss based on that difference. Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The determination of fair value using this technique requires the use of estimates and assumptions related to the projected tradename revenue growth, the assumed royalty rate and the discount rate. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending and a decrease in royalty rates. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. Investments in Equity Securities non-controlling During the fourth quarter of 2018, our Plumbing segment entered into strategic partnerships with several companies who incorporate emerging technology into plumbing-related products, and at the same time acquired non-controlling shut-off As of December 31, 2018, all of our investments in our strategic partners do not have readily determinable fair values. As of December 31, 2018 and 2017, the carrying value of our investments was $28.7 million and zero, respectively, which is included in other assets within our Consolidated Balance Sheet. There were no impairments or other changes resulting from observable prices changes recorded during the year ended December 31, 2018. Impairments of $7.0 million were recorded within Other income, net within the Consolidated Statements of Income during the year ended December 31, 2017 (see Note 22). Defined Benefit Plans We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation – Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan Insurance Reserves Litigation Contingencies Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting bases and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. We record liabilities for uncertain income tax positions based on a two-step The Tax Act made significant changes to the U.S. Internal Revenue Code including a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, generally providing for an exemption from federal income tax for dividends received from foreign subsidiaries, and imposing a one- time The Tax Act included a provision for Global Intangible Low-Taxed Revenue Recognition Cost of Products Sold Customer Program Costs Selling, General and Administrative Expenses . Advertising costs, which amounted to $243.6 million, $233.2 million and $199.1 million in 2018, 2017 and 2016, respectively, are principally expensed as incurred. Advertising costs paid to customers as pricing rebates include product displays, marketing administration costs, media production costs and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $72.4 million, $65.6 million and $52.5 million in 2018, 2017 and 2016, respectively. Advertising costs recorded in selling, general and administrative expenses were $171.2 million, $167.6 million and $146.6 million in 2018, 2017 and 2016, respectively. Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $50.3 million, $50.7 million and $53.1 million in 2018, 2017 and 2016, respectively, are expensed as incurred. Stock-based Compensation Earnings Per Share Foreign Currency Translation Derivative Financial Instruments Deferred currency gains/(losses) of $2.2 million, $0.4 million and $(3.5) million (before tax impact) were reclassified into earnings for the year ended December 31, 2018, 2017 and 2016, respectively. Based on foreign exchange rates as of December 31, 2018, we estimate that $3.3 million of net currency derivative gains included in AOCI as of December 31, 2018 will be reclassified to earnings within the next twelve months. Recently Issued Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, 2014-09 A majority of our sales revenue continues to be recognized when products are shipped from our facilities to our customers. Previously, for certain products, we recognized sales revenue at destination as we determined risks and rewards transferred at that point. We now recognize sales revenue for these customers at the shipping point of the products consistent with the respective contractual terms. See Note 14, “Revenue,” for further information. Leases In February 2016, the FASB issued ASU 2016-02, “right-of-use” 2018-01, 2018-10 2018-11, 2016-02 We plan to adopt the standard in the first quarter of 2019 using the transition method introduced by ASU 2018-11, While we are continuing to finalize our assessment of the impacts of the standard, we have completed our scoping reviews, identified our significant leases by segment and by asset type, and made progress in developing accounting policies upon adoption of the standard. We have implemented an accounting system to support the future state leasing process and input the data from substantially all of our existing leases into the system. We continue to refine our future process design as part of the overall system implementation. Upon adoption, we expect to recognize a lease liability, with an offsetting increase to right-of-use right-of-use Presentation of Net Periodic Pension and Postretirement Cost In March 2017, the FASB issued ASU 2017-07, which 2014-09 Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, non-substantive Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Restricted Cash In November 2016, the FASB issued ASU 2016-18, Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, Classification of Certain Cash Receipts and Cash Payments In September 2016, the FASB issued ASU 2016-15, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, available-for-sale Clarifying Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, non-customer. Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12 Financial Instruments — Credit Losses In June 2016, the FASB issued ASU 2016-13, off-balance-sheet Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07 Codification Improvements In July 2018, the FASB issued ASU 2018-09 Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14 Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 internal-use |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Information | 3. Balance Sheet Information Supplemental information on our year-end (In millions) 2018 (a) 2017 Inventories: Raw materials and supplies $ 227.4 $ 224.9 Work in process 66.4 58.3 Finished products 385.1 297.6 Total inventories $ 678.9 $ 580.8 Property, plant and equipment: Land and improvements $ 66.8 $ 58.7 Buildings and improvements to leaseholds 500.1 464.1 Machinery and equipment 1,249.0 1,167.5 Construction in progress 95.8 90.1 Property, plant and equipment, gross 1,911.7 1,780.4 Less: accumulated depreciation 1,098.3 1,040.4 Property, plant and equipment, net of accumulated depreciation $ 813.4 $ 740.0 Other current liabilities: Accrued salaries, wages and other compensation $ 85.9 $ 105.9 Accrued customer programs 167.8 142.8 Accrued taxes 57.7 61.4 Dividends payable 30.9 30.4 Other accrued expenses 165.8 137.5 Total other current liabilities $ 508.1 $ 478.0 (a) 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions In September 2018, we acquired 100% of membership interests of Fiber Composites LLC (“Fiberon”), a leading U.S. manufacturer of outdoor performance materials used in decking, railing and fencing products for a total purchase price of approximately $470.0 million, subject to certain post-closing adjustments. The acquisition of Fiberon provides category expansion and product extension opportunities into the outdoor living space for our Doors & Security segment. Fiberon’s net sales and operating income in 2018 were not material to the Company. We have not included pro forma financial information as it is immaterial to our consolidated statements of comprehensive income. We financed the transaction using cash on hand and borrowings under our revolving credit and term loan facilities. The results of operations are included in the Doors & Security segment from the date of the acquisition. We expect goodwill related to this acquisition to be deductible for income tax purposes. The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 19.2 Inventories 49.4 Property, plant and equipment 49.0 Goodwill 173.4 Identifiable intangible assets 195.0 Other assets 4.8 Total assets 490.8 Accounts payable 16.5 Other liabilities and accruals 14.5 Net assets acquired $ 459.8 The preceding purchase price allocation has been determined provisionally and is subject to revision as additional information about the fair value of individual assets and liabilities becomes available. We apply significant judgement in determining the estimates and assumptions used to determine the fair value of the identifiable intangible assets, including forecasted revenue growth rates, customer attrition rates, discount rates and assumed royalty rates. The Company is in the process of finalizing valuations of certain tangible and intangible assets, including property, plant and equipment and identifiable intangible assets. The provisional measurement of property, plant and equipment, identifiable intangible assets, and goodwill is subject to change. Any change in the acquisition date fair value of the acquired net assets will change the amount of the purchase price allocable to goodwill. Goodwill includes expected sales and cost synergies. Identifiable intangible assets primarily consist of customer relationships and tradenames. In October 2017, we acquired Victoria + Albert, a UK-based premium brand of standalone bathtubs, sinks, tub fillers, faucets and other accessories. In July 2017, we acquired Shaws, a UK-based luxury plumbing products company that specializes in manufacturing and selling fireclay sinks and selling brassware and accessories. The total combined consideration paid was approximately $146 million, including $19.9 million of additional purchase price consideration paid related to post-closing adjustments and deferred acquisition payments during 2018. The combined consideration paid is subject to further deferred acquisition payments. Net sales and operating income in 2017 from these acquisitions were not material to the Company. We financed the transactions using cash on hand and borrowings under our existing revolving and term loan credit facilities. The results of the operations are included in the Plumbing segment from the respective dates of acquisition. We do not expect any portion of goodwill to be deductible for income tax purposes. In April 2017, we completed the sale of Field ID, our cloud-based inspection and safety compliance software product line included in our Doors & Security segment. We recorded a pre-tax pre-tax |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations | 5. Discontinued Operations In the twelve months ended December 31, 2017, the loss on discontinued operations is primarily related to the prior sale of the Waterloo tool storage and Simonton window businesses. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Identifiable Intangible Assets | 6. Goodwill and Identifiable Intangible Assets We had goodwill of $2,080.3 million and $1,912.0 million as of December 31, 2018 and 2017, respectively. The increase of $168.3 million was primarily due to the acquisition of Fiberon in the Doors & Security segment as well as acquisition related adjustments in our Plumbing segment related to the acquisition of Victoria + Albert, partially offset by foreign translation adjustments. The change in the net carrying amount of goodwill by segment was as follows: (In millions) Cabinets Plumbing Doors & Security Total Goodwill Balance at December 31, 2016 (a) $ 924.3 $ 670.2 $ 239.3 $ 1,833.8 2017 translation adjustments 2.0 3.3 1.2 6.5 Acquisition-related adjustments — 71.7 — 71.7 Balance at December 31, 2017 (a) $ 926.3 $ 745.2 $ 240.5 $ 1,912.0 2018 translation adjustments (2.3 ) (5.9 ) (1.4 ) (9.6 ) Acquisition-related adjustments — 4.4 173.5 177.9 Balance at December 31, 2018 (a) $ 924.0 $ 743.7 $ 412.6 $ 2,080.3 (a) Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. We also had identifiable intangible assets, principally tradenames and customer relationships, of $1,246.8 million and $1,162.4 million as of December 31, 2018 and 2017, respectively. The $117.9 million increase in gross identifiable intangible assets was primarily due to the acquisition of Fiberon in our Doors & Security segment partially offset by a tradename impairment charges of $62.6 million in our Cabinets segment. The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2018 and 2017 were as follows: As of December 31, 2018 As of December 31, 2017 (In millions) Gross Accumulated Net Book Gross Accumulated Net Book Indefinite-lived tradenames $ 673.9 $ — $ 673.9 $ 709.9 $ — $ 709.9 Amortizable intangible assets Tradenames 19.8 (11.9 ) 7.9 15.7 (9.9 ) 5.8 Customer and contractual relationships 800.3 (260.2 ) 540.1 663.8 (232.0 ) 431.8 Patents/proprietary technology 73.5 (48.6 ) 24.9 60.2 (45.3 ) 14.9 Total 893.6 (320.7 ) 572.9 739.7 (287.2 ) 452.5 Total identifiable intangibles $ 1,567.5 $ (320.7 ) $ 1,246.8 $ 1,449.6 $ (287.2 ) $ 1,162.4 Amortizable intangible assets, principally customer relationships and patents/proprietary technology, are subject to amortization on a straight-line basis over their estimated useful life, ranging from 2 to 30 years, based on the assessment of a number of factors that may impact useful life. These factors include historical tradename performance with respect to consumer name recognition, geographic market presence, market share, plans for ongoing tradename support and promotion, customer attrition rates, and other relevant factors. We expect to record intangible amortization of approximately $43 million in 2019, $42 million in 2020, $42 million in 2021, $40 million in 2022, and $39 million in 2023. We review indefinite-lived tradename intangible assets for impairment annually in the fourth quarter, as well as whenever market or business events indicate there may be a potential impact on a specific intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the tradename to a third party over the remaining useful life. The determination of fair value using this technique requires the use of estimates and assumptions related to projected tradename revenue growth, the assumed royalty rate and the discount rate. During 2018, we recognized asset impairment charges of $62.6 million related to two indefinite-lived tradenames within our Cabinets segment. During the third quarter of 2018, we recognized an impairment of $27.1 million related to one tradename, which was primarily the result of reduced revenue growth expectations associated with Cabinets operations in Canada, including the announced closure of Company-owned retail locations during the third quarter of 2018. During the fourth quarter of 2018, we recognized an impairment of $35.5 million related to another tradename, which was primarily the result of lower than forecasted sales during the fourth quarter of 2018 as well as projected changes in the mix of revenue across our tradenames in future periods, including the impact of more moderate industry growth expectations, which were finalized during our annual planning process conducted during the fourth quarter. The fair values of the impaired tradenames were measured using the relief-from-royalty approach, which estimates the present value of royalty income that could be hypothetically earned by licensing the tradename to a third party over its remaining useful life. Some of the more significant assumptions inherent in estimating the fair value include estimated future annual net sales for the tradename, assumed royalty rate, income tax rate, and a discount rate that reflects the level of risk associated with the tradename’s future sales and profitability. We selected the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management plans. These assumptions represent level 3 inputs of the fair value hierarchy (refer to Note 10). As of December 31, 2018, the carrying value of the tradenames that were impaired was approximately $152.0 million. We did not record any asset impairment changes associated with goodwill or indefinite-lived assets in 2017 or 2016. The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending, a decrease in royalty rates and decline in the trading price of our common stock. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. |
Asset Impairment Charges
Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2018 | |
Asset Impairment Charges | 7. Asset Impairment Charges In January 2017, we committed to a plan to sell Field ID, our cloud-based inspection and safety compliance software product line included in our Doors & Security segment. In accordance with FASB Accounting Standards Codification (“ASC”) 360, as a result of our decision to sell, during the first quarter of 2017 we recorded $3.2 million of pre-tax |
External Debt and Financing Arr
External Debt and Financing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
External Debt and Financing Arrangements | 8. External Debt and Financing Arrangements In September 2018, we issued $600 million of unsecured senior notes (“2018 Senior Notes”) in a registered public offering. The 2018 Senior Notes are due in 2023 with a coupon rate of 4%. All other terms and conditions of the 2018 Senior Notes are substantially consistent with the 2015 Senior Notes. We used the proceeds from the 2018 Senior Notes offering to pay down our revolving credit facility. On December 31, 2018, the net carrying value of the 2018 Senior Notes, net of underwriting commissions, price discounts, and debt issuance costs, was $595.0 million. In June 2015, we issued $900 million of unsecured senior notes (“2015 Senior Notes”, and collectively with the 2018 Senior Notes, the “Senior Notes”) in a registered public offering. The 2015 Senior Notes consist of two tranches: $400 million of five-year notes due in 2020 with a coupon rate of 3% and $500 million of ten- year In March 2018, the Company entered into a $350 million term loan for general corporate purposes that matures in March 2019. In August 2018, the Company amended its existing $350 million term loan to increase the borrowings under the term loan from $350 million to $525 million. All other terms and conditions on the amended term loan remain the same as the previous $350 million term loan. Interest rates under the term loan are variable based on LIBOR at the time of the borrowing and the Company’s long-term credit rating and can range from LIBOR + 0.625% to LIBOR + 1.25%. Covenants under the term loan are the same as the existing $1.25 billion revolving credit agreement. As of December 31, 2018, we were in compliance with all covenants under this term loan. In June 2016, the Company amended and restated its credit agreement to combine and rollover the 2011 revolving credit facility and term loan into a new standalone $1.25 billion revolving credit facility. The amendment and restatement was a non-cash We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $23.5 million in aggregate, of which zero were outstanding, as of December 31, 2018 and 2017. The weighted-average interest rates on these borrowings were zero in 2018 and 2017. The components of external long-term debt were as follows: (In millions) 2018 2017 $400 million unsecured senior note due June 2020 $ 399.0 $ 398.3 $500 million unsecured senior note due June 2025 495.0 494.3 $600 million unsecured senior note due September 2023 595.0 — $1,250 million revolving credit agreement due June 2021 320.0 615.0 $525 million term loan due March 2019 525.0 — Total debt 2,334.0 1,507.6 Less: current portion 525.0 — Total long-term debt $ 1,809.0 $ 1,507.6 Senior Notes payments during the next five years as of December 31, 2018 are zero in 2019, $400 million in 2020, zero in 2021 and $600 million in 2022 through 2023. In our debt agreements, there are normal and customary events of default which would permit the lenders to accelerate the debt if not cured within applicable grace periods, such as failure to pay principal or interest when due or a change in control of the Company. There were no events of default as of December 31, 2018. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | 9. Financial Instruments We do not enter into financial instruments for trading or speculative purposes. We principally use financial instruments to reduce the impact of changes in foreign currency exchange rates and commodities used as raw materials in our products. The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. Derivative financial instruments are recorded at fair value. The counterparties to derivative contracts are major financial institutions. We are subject to credit risk on these contracts equal to the fair value of these instruments. Management currently believes that the risk of incurring material losses is unlikely and that the losses, if any, would be immaterial to the Company. Raw materials used by the Company are subject to price volatility caused by weather, supply conditions, geopolitical and economic variables, and other unpredictable external factors. As a result, from time to time, we enter into commodity swaps to manage the price risk associated with forecasted purchases of materials used in our operations. We account for these commodity derivatives as economic hedges or cash flow hedges. Changes in the fair value of economic hedges are recorded directly into current period earnings. There were no material commodity swap contracts outstanding for the years ended December 31, 2018 and 2017. We enter into foreign exchange contracts primarily to hedge forecasted sales and purchases denominated in select foreign currencies, thereby limiting currency risk that would otherwise result from changes in exchange rates. The periods of the foreign exchange contracts correspond to the periods of the forecasted transactions, which generally do not exceed 12 to 15 months subsequent to the latest balance sheet date. For derivative instruments that are designated as fair value hedges, the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, are recognized on the same line of the statement of income. The effective portions of cash flow hedges are reported in other comprehensive income (“OCI”) and are recognized in the statement of income when the hedged item affects earnings. The changes in fair value for net investment hedges are recognized in the statement of income when realized upon sale or upon complete or substantially complete liquidation of the investment in the foreign entity. The ineffective portion of all hedges is recognized in current period earnings. In addition, changes in the fair value of all economic hedge transactions are immediately recognized in current period earnings. Our primary foreign currency hedge contracts pertain to the Canadian dollar, the British pound, the Chinese yuan and the Mexican peso. The gross U.S. dollar equivalent notional amount of all foreign currency derivative hedges outstanding at December 31, 2018 was $345.3 million, representing a net settlement assets of $3.4 million. Based on foreign exchange rates as of December 31, 2018, we estimate that $3.3 million of net foreign currency derivative losses included in OCI as of December 31, 2018 will be reclassified to earnings within the next twelve months. The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2018 and 2017 were: Fair Value (In millions) Location 2018 2017 Assets: Foreign exchange contracts Other current assets $ 5.3 $ 0.8 Commodity contracts Other current assets — 0.2 Net investment hedges Other current assets 0.7 — Total assets $ 6.0 $ 1.0 Liabilities: Foreign exchange contracts Other current liabilities $ 1.9 $ 5.6 Net investment hedges Other current liabilities — 0.8 Total liabilities $ 1.9 $ 6.4 The effects of derivative financial instruments on the consolidated statements of income in 2018, 2017 and 2016 were: (In millions) Gain (Loss) Recognized in Income Type of hedge Location 2018 2017 2016 Cash flow Cost of products sold $ 2.0 $ 0.9 $ (3.5 ) Fair value Other (income) expense, net 3.7 (2.0 ) 2.0 Total $ 5.7 $ (1.1 ) $ (1.5 ) The effective portion of cash flow hedges recognized in other comprehensive income were net gains (losses) of $10.1 million and $(1.8) million in 2018 and 2017, respectively. In the year ended December 31, 2018, the ineffective portion of cash flow hedges recognized in other income, net, was $3.8 million and insignificant in the years ended December 31, 2017 and 2016. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | 10. Fair Value Measurements ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are level 3. The carrying value and fair value of debt as of December 31, 2018 and 2017 were as follows: (In millions) December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Revolving credit facility $ 320.0 $ 320.0 $ 615.0 $ 615.0 Term Loan 525.0 525.0 — — Senior Notes, net of underwriting commissions and price discounts 1,489.0 1,490.4 892.6 926.3 The estimated fair value of our term loan and revolving credit facility is determined primarily using broker quotes, which are level 2 inputs. The estimated fair value of our Senior Notes is determined by using quoted market prices of our debt securities, which are level 1 inputs. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 were as follows: (In millions) Fair Value 2018 2017 Assets: Derivative asset financial instruments (level 2) $ 6.0 $ 1.0 Deferred compensation program assets (level 2) 9.3 7.5 Total assets $ 15.3 $ 8.5 Liabilities: Derivative liability financial instruments (level 2) $ 1.9 $ 6.4 The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock | 11. Capital Stock The Company has 750 million authorized shares of common stock, par value $0.01 per share. The number of shares of common stock and treasury stock and the share activity for 2018 and 2017 were as follows: Common Shares Treasury Shares 2018 2017 2018 2017 Balance at the beginning of the year 151,906,797 153,412,050 27,879,929 24,305,930 Stock plan shares issued 822,878 2,068,746 — — Shares surrendered by optionees (230,550 ) (180,537 ) 230,550 180,537 Common stock repurchases (12,000,144 ) (3,393,462 ) 12,000,144 3,393,462 Balance at the end of the year 140,498,981 151,906,797 40,110,623 27,879,929 In December 2018, our Board of Directors increased the quarterly cash dividend by 10% to $0.22 per share of our common stock. The Company has 60 million authorized shares of preferred stock, par value $0.01 per share. At December 31, 2018, no shares of our preferred stock were outstanding. Our Board of Directors has the authority, without action by the Company’s stockholders, to designate and issue our preferred stock in one or more series and to designate the rights, preferences, limitations and privileges of each series of preferred stock, which may be greater than the rights of the Company’s common stock. In 2018, we repurchased approximately 12.0 million shares of outstanding common stock under the Company’s share repurchase program at a cost of $694.6 million. As of December 31, 2018, the Company’s total remaining share repurchase authorization under the remaining program was approximately $413.7 million. The share repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive (Loss) Income | 12. Accumulated Other Comprehensive (Loss) Income The reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2018 and 2017 were as follows: (In millions) Details about Accumulated Other Comprehensive Affected Line Item in the 2018 2017 Gains (losses) on cash flow hedges Foreign exchange contracts $ 2.2 $ 0.4 Cost of products sold Interest rate contracts 0.1 — Other income, net Commodity contracts (0.2 ) 0.5 Cost of products sold 2.1 0.9 Total before tax (0.4 ) (0.1 ) Tax expense $ 1.7 $ 0.8 Net of tax Defined benefit plan items Recognition of prior service cost $ — $ 5.1 (a) Recognition of actuarial (losses) gains (3.8 ) 0.5 (a) (3.8 ) 5.6 Total before tax 0.8 (2.0 ) Tax expense $ (3.0 ) $ 3.6 Net of tax Total reclassifications for the period $ (1.3 ) $ 4.4 Net of tax (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 15, “Defined Benefit Plans,” for additional information. Total accumulated other comprehensive (loss) income consists of net income and other changes in business equity from transactions and other events from sources other than shareholders. It includes currency translation gains and losses, unrealized gains and losses from derivative instruments designated as cash flow hedges, and defined benefit plan adjustments. The after-tax (In millions) Foreign Derivative Hedging Gain Defined Plan Accumulated Balance at December 31, 2015 $ (13.3 ) $ 2.1 $ (41.3 ) $ (52.5 ) Amounts classified into accumulated other comprehensive (loss) income (14.7 ) (6.2 ) 5.3 (15.6 ) Amounts reclassified from accumulated other comprehensive (loss) income into earnings — 3.5 (7.3 ) (3.8 ) Net current period other comprehensive (loss) income (14.7 ) (2.7 ) (2.0 ) (19.4 ) Balance at December 31, 2016 $ (28.0 ) $ (0.6 ) $ (43.3 ) $ (71.9 ) Amounts classified into accumulated other comprehensive (loss) income 33.8 (1.0 ) 4.3 37.1 Amounts reclassified from accumulated other comprehensive (loss) income into earnings — (0.8 ) (3.6 ) (4.4 ) Net current period other comprehensive (loss) income 33.8 (1.8 ) 0.7 32.7 Balance at December 31, 2017 $ 5.8 $ (2.4 ) $ (42.6 ) $ (39.2 ) Amounts classified into accumulated other comprehensive (loss) income (31.1 ) 8.3 (6.3 ) (29.1 ) Amounts reclassified into earnings — (1.7 ) 3.0 1.3 Net current period other comprehensive (loss) income (31.1 ) 6.6 (3.3 ) (27.8 ) Balance at December 31, 2018 $ (25.3 ) $ 4.2 $ (45.9 ) $ (67.0 ) |
Stock-Based Compensation (Updat
Stock-Based Compensation (Updated by Corporate) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation (Updated by Corporate) | 13. Stock-Based Compensation As of December 31, 2018, we had awards outstanding under two Long-Term Incentive Plans, the Fortune Brands Home & Security, Inc. 2013 Long-Term Incentive Plan (the “Plan”) and the 2011 Long-Term Incentive Plan (the “2011 Plan”, and together with the Plan—the “Plans”). Our stockholders approved the Plan in 2013, which provides for the granting of stock options, performance share awards, restricted stock units, and other equity-based awards, to employees, directors and consultants. As of December 31, 2018, approximately 4.6 million shares of common stock remained authorized for issuance under the Plan. In addition, shares of common stock may be automatically added to the number of shares of common stock that may be issued as awards expire, are terminated, cancelled or forfeited, or are used to satisfy the required withholding taxes with respect to existing awards under the Plans. No new stock-based awards can be made under the 2011 Plan, but there are outstanding stock options under the 2011 Plan that continue to be exercisable. Upon the exercise or payment of stock-based awards, shares of common stock are issued from authorized common shares. Stock-based compensation expense from continuing operations was as follows: (In millions) 2018 2017 2016 Stock option awards $ 8.6 $ 7.4 $ 7.2 Restricted stock units 21.3 21.6 17.2 Performance awards 6.3 13.6 6.7 Director awards 1.0 1.0 0.9 Total pre-tax 37.2 43.6 32.0 Tax benefit 6.2 15.2 11.4 Total after tax expense $ 31.0 $ 28.4 $ 20.6 Included in compensation costs are cash-settled restricted stock units of $0.9 million that are classified as a liability. Compensation costs that were capitalized in inventory were not material. Restricted Stock Units Restricted stock units have been granted to officers and certain employees of the Company and represent the right to receive unrestricted shares of Company common stock subject to continued employment through each vesting date. In addition, certain employees can elect to defer receipt of a portion of their RSU awards upon vesting. Compensation cost is recognized over the service period. We calculate the fair value of each restricted stock unit granted by using the average of the high and low share prices on the date of grant. Restricted stock units generally vest ratably over a three-year period. A summary of activity with respect to restricted stock units outstanding under the Plans for the year ended December 31, 2018 was as follows: Number of Restricted Weighted-Average Fair Value Non-vested 728,065 $ 54.59 Granted 356,860 61.07 Vested (373,593 ) 52.92 Forfeited (50,957 ) 59.87 Non-vested 660,375 $ 58.63 The remaining unrecognized pre-tax Stock Option Awards Stock options were granted to officers and certain employees of the Company and represent the right to purchase shares of Company common stock subject to continued employment through each vesting date. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. We recognize compensation expense on awards on a straight-line basis over the requisite service period for the entire award. Stock options granted under the Plans generally vest over a three-year period and have a maturity of ten years from the grant date. The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: 2018 2017 2016 Current expected dividend yield 1.3% 1.4% 1.4% Expected volatility 24.0% 26.0% 30.0% Risk-free interest rate 2.6% 1.9% 1.3% Expected term 5 years 5.5 years 5.5 years The determination of expected volatility is based on a blended peer group volatility for companies in similar industries, at a similar stage of life and with similar market capitalization. The risk-free interest rate is based on U.S. government issues with a remaining term equal to the expected life of the stock options. The expected term is the period over which our employees are expected to hold their options. The expected term was determined based on the historical employee exercise behavior and the contractual term of the options. The dividend yield is based on the Company’s estimated dividend over the expected term. The weighted-average grant date fair value of stock options granted under the Plans during the years ended December 31, 2018, 2017 and 2016 was $14.14, $13.49 and $12.70, respectively. A summary of Fortune Brands stock option activity related to Fortune Brands and former employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2018 was as follows: Options Weighted- Outstanding at December 31, 2017 3,682,958 $ 36.28 Granted 628,614 63.44 Exercised (214,727 ) 22.86 Expired/forfeited (73,023 ) 59.07 Outstanding at December 31, 2018 4,023,822 $ 40.83 Options outstanding and exercisable at December 31, 2018 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Exercise Prices Options Weighted- Average Weighted- Options Weighted- $9.00 to $12.99 104,500 2.0 $ 12.30 104,500 $ 12.30 13.00 to 20.00 1,096,463 2.5 16.37 1,096,463 16.37 20.01 to 65.41 2,822,859 6.8 51.38 1,731,059 45.91 4,023,822 5.5 $ 40.83 2,932,022 $ 33.67 (a) At December 31, 2018, the aggregate intrinsic value of options outstanding was $28.1 million. (b) At December 31, 2018, the weighted-average remaining contractual life of options exercisable was 4.4 years and the aggregate intrinsic value of options exercisable was $28.1 million. The remaining unrecognized compensation cost related to unvested awards at December 31, 2018 was $5.1 million, and the weighted-average period of time over which this cost will be recognized is 1.6 years. The fair value of options that vested during the years ended December 31, 2018, 2017 and 2016 was $6.7 million, $6.8 million and $6.0 million, respectively. The intrinsic value of Fortune Brands stock options exercised in the years ended December 31, 2018, 2017 and 2016 was $8.7 million, $70.6 million and $88.1 million, respectively. Performance Awards Performance share awards were granted to officers and certain employees of the Company and represent the right to earn non-GAAP The following table summarizes information about Number of Weighted-Average Grant-Date Fair Value Non-vested 428,328 $ 52.35 Granted 140,071 63.44 Vested (136,822 ) 47.48 Forfeited (22,486 ) 57.41 Non-vested 409,091 $ 57.50 The remaining unrecognized pre-tax Director Awards Stock awards are used as part of the compensation provided to outside directors under the Plan. Awards are issued annually in the second quarter. In addition, outside directors can elect to have director fees paid in stock or can elect to defer payment of stock. Compensation cost is expensed at the time of an award based on the fair value of a share at the date of the award. In 2018, 2017 and 2016, we awarded 19,109, 15,311 and 16,471 shares of Company common stock to outside directors with a weighted average fair value on the date of the award of $54.93, $63.43 and $57.37, respectively. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue | 14. Revenue Our principal performance obligations are the sale of kitchen and bath cabinets, faucets and accessories, fiberglass and steel entry-door systems and locks, safes, safety, security devices and decking (collectively, “goods” or “products”). We recognize revenue for the sale of goods based on our assessment of when control transfers to our customers. For the majority of our sales, we recognize revenue at the point in time when we ship product from our facilities to our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods to our customers. Payment terms on our product sales normally range from 30 to 90 days. Taxes assessed by a governmental authority that we collect are excluded from revenue. The expected costs associated with our contractual warranties will continue to be recognized as expense when the products are sold. See Note 18, “Product Warranties,” for further discussion. We record estimates to reduce revenue for customer programs and incentives, which are considered variable consideration, and include price discounts, volume-based incentives, promotions and cooperative advertising when revenue is recognized in order to determine the amount of consideration the Company will ultimately be entitled to receive. These estimates are based on historical and projected experience for each type of customer. In addition, for certain customer program incentives, we receive an identifiable benefit (goods or services) in exchange for the consideration given and record the associated expenditure in selling, general and administrative expenses. We account for shipping and handling costs that occur after the customer has obtained control of a product as a fulfillment activity (i.e., as an expense) rather than as a promised service (i.e., as a revenue element). These costs are classified within selling, general and administrative expenses. Settlement of our outstanding accounts receivable balances is normally within 30 to 90 days of the original sale transaction date. Obligations arise for us from customer rights to return our goods for any reason, including among others, product obsolescence, stock rotations, trade-in The Company disaggregates revenue from contracts with customers into (i) major sales distribution channels in the U.S. and (ii) total sales to customers outside the U.S. market as these categories depict the nature, amount, timing and uncertainty of revenues and cash flows that are affected by economic factors. The following table disaggregates our consolidated revenue by major sales distribution channels for the year ended December 31, 2018. (In millions) December 31, 2018 Wholesalers (1) $ 2,607.3 Home Center retailers (2) 1,452.3 Other retailers (3) 311.6 Builder direct 235.4 U.S. net sales 4,606.6 International (4) 878.5 Net sales $ 5,485.1 (1) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (2) Represents sales to the three largest “Do-It-Yourself” (3) Represents sales principally to our mass merchant and standalone independent e-commerce (4) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. Practical Expedients Incremental costs of obtaining a contract include only those costs the Company incurs that would not have been incurred if the contract had not been obtained. These costs are required to be recognized as assets and amortized over the period that the related goods or services transfer to the customer. As a practical expedient, we expense as incurred costs to obtain a contract when the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. |
Defined Benefit Plans
Defined Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans | 15. Defined Benefit Plans We have a number of pension plans in the United States, covering many of the Company’s employees, however these plans have been closed to new hires. The plans provide for payment of retirement benefits, mainly commencing between the ages of 55 and 65. After meeting certain qualifications, an employee acquires a vested right to future benefits. The benefits payable under the plans are generally determined on the basis of an employee’s length of service and/or earnings. Employer contributions to the plans are made, as necessary, to ensure legal funding requirements are satisfied. Also, from time to time, we may make contributions in excess of the legal funding requirements. Service cost for 2018 relates to benefit accruals in an hourly Union defined benefit plan in our Doors & Security segment. Benefit accruals under all other defined benefit pension plans were frozen as of December 31, 2016. In addition, the Company provides postretirement health care and life insurance benefits to certain retirees. (In millions) Pension Benefits Postretirement Benefits Obligations and Funded Status at December 31 2018 2017 2018 2017 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 832.4 $ 791.7 $ 1.6 $ 3.6 Service cost 0.5 0.6 — — Interest cost 30.7 33.3 — — Plan amendments — — — — Actuarial loss (gain) (63.1 ) 40.6 (0.2 ) (1.4 ) Benefits paid (37.3 ) (33.8 ) — (0.4 ) Foreign exchange — — — (0.2 ) Projected benefit obligation at end of year $ 763.2 $ 832.4 $ 1.4 $ 1.6 Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) $ 763.2 $ 832.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 656.6 $ 577.7 $ — $ — Actual return on plan assets (30.7 ) 83.2 — — Employer contributions 11.0 29.5 — 0.5 Benefits paid (37.3 ) (33.8 ) — (0.5 ) Fair value of plan assets at end of year $ 599.6 $ 656.6 $ — $ — Funded status (Fair value of plan assets less PBO) $ (163.6 ) $ (175.8 ) $ (1.4 ) $ (1.6 ) The accumulated benefit obligation exceeds the fair value of assets for all pension plans. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (In millions) 2018 2017 2018 2017 Current benefit payment liability $ (1.5 ) $ (1.1 ) $ (0.2 ) $ (0.2 ) Accrued benefit liability (162.1 ) (174.7 ) (1.2 ) (1.4 ) Net amount recognized $ (163.6 ) $ (175.8 ) $ (1.4 ) $ (1.6 ) In the first quarter of 2013, the Company communicated a plan amendment to reduce health benefits to certain retired employees. Due to the risk of litigation at the time of the initial communication, the Company elected to defer the full recognition of the benefit arising from the plan amendment. Following a favorable court decision in the first quarter of 2016, the Company determined that it would realize the benefit from the plan amendment. As a result, the Company performed a re-measurement In January 2018, we adopted ASU 2017-07, non-service 2017-07 (In millions) 2017 2016 Increase to cost of products sold $ 7.5 $ 8.5 Increase to selling, general and administrative expenses 2.1 5.6 Decrease to operating income $ (9.6 ) $ (14.1 ) As of December 31, 2018, we adopted the new Society of Actuaries MP-2018 MP-2017 The amounts in accumulated other comprehensive loss on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In millions) Pension Benefits Postretirement Benefits Net actuarial loss at December 31, 2016 $ 73.4 $ — Recognition of actuarial (loss) gain (0.9 ) 1.4 Current year actuarial gain (5.3 ) (1.4 ) Net actuarial loss at December 31, 2017 $ 67.2 $ — Recognition of actuarial (loss) gain (3.9 ) 0.1 Current year actuarial loss (gain) 8.5 (0.4 ) Net actuarial loss at December 31, 2018 $ 71.8 $ (0.3 ) Net prior service cost (credit) at December 31, 2016 $ — $ (5.1 ) Amortization — 5.1 Net prior service cost (credit) at December 31, 2017 $ — $ — Amortization — — Net prior service cost (credit) at December 31, 2018 $ — $ — Total at December 31, 2018 $ 71.8 $ (0.3 ) There are no accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. Components of net periodic benefit cost were as follows: Components of Net Periodic Benefit (Income) Cost Pension Benefits Postretirement Benefits (In millions) 2018 2017 2016 2018 2017 2016 Service cost $ 0.5 $ 0.6 $ 9.6 $ — $ — $ — Interest cost 30.7 33.3 34.4 — — 0.3 Expected return on plan assets (41.0 ) (37.3 ) (37.2 ) — — — Recognition of actuarial losses (gains) 3.9 0.9 — (0.1 ) (1.4 ) 1.9 Amortization of prior service credits — — — — (5.1 ) (13.5 ) Net periodic benefit (income) cost $ (5.9 ) $ (2.5 ) $ 6.8 $ (0.1 ) $ (6.5 ) $ (11.3 ) Assumptions Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted-Average Assumptions Used to Discount rate 4.4% 3.8% 4.3% 4.2% 3.4% 3.4% Rate of compensation increase — — 4.0% — — — Weighted-Average Assumptions Used to Discount rate 3.8% 4.3% 4.6% 3.4% 3.4% 4.1% Expected long-term rate of return on plan assets 6.0% 6.4% 6.6% — — — Rate of compensation increase — — 4.0% — — — Postretirement 2018 2017 Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31: Health care cost trend rate assumed for next year 6.9/8.0 % (a) 7.1/8.4 % (a) Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2026 (a) The pre-65 post-65 A one-percentage-point (In millions) 1-Percentage- 1-Percentage- Effect on postretirement benefit obligation (0.1 ) 0.1 Plan Assets The fair value of the pension assets by major category of plan assets as of December 31, 2018 and 2017 were as follows: (In millions) Total as of 2018 2017 Group annuity/insurance contracts (level 3) $ 23.6 $ 23.3 Collective trusts: Cash and cash equivalents 7.7 12.5 Equity 197.7 285.9 Fixed income 324.6 277.7 Multi-strategy hedge funds 22.0 24.6 Real estate 24.0 32.6 Total $ 599.6 $ 656.6 A reconciliation of Level 3 measurements was as follows: Group annuity/ (In millions) 2018 2017 January 1 $ 23.3 $ 22.8 Actual return on assets related to assets still held 0.3 0.5 December 31 $ 23.6 $ 23.3 Our defined benefit plans Master Trust own a variety of investment assets. All of these investment assets, except for group annuity/insurance contracts are measured using net asset value per share as a practical expedient per ASC 820. Following the retrospective adoption of ASU 2015-07 The terms and conditions for redemptions vary for each class of the investment assets valued at net asset value per share as a practical expedient. Real estate assets may be redeemed quarterly with a 45 day redemption notice period. Investment assets in multi-strategy hedge funds may be redeemed semi-annually with a 95 day redemption notice period. Equity, fixed income and cash and cash equivalents have no specified redemption frequency and notice period and may be redeemed daily. As of December 31, 2018 we do not have an intent to sell or otherwise dispose of these investment assets at prices different than the net asset value per share. Our investment strategy is to optimize investment returns through a diversified portfolio of investments, taking into consideration underlying plan liabilities and asset volatility. The defined benefit asset allocation policy of the plans allow for an equity allocation of 0% to 75%, a fixed income allocation of 25% to 100%, a cash allocation of up to 25% and other investments of up to 20%. Asset allocations are based on the underlying liability structure. All retirement asset allocations are reviewed periodically to ensure the allocation meets the needs of the liability structure. Our 2019 expected blended long-term rate of return on plan assets of 6.0% was determined based on the nature of the plans’ investments, our current asset allocation and projected long-term rates of return from pension investment consultants. Estimated Future Retirement Benefit Payments The following retirement benefit payments are expected to be paid: (In millions) Pension Benefits Postretirement 2019 $ 39.4 $ 0.1 2020 41.0 0.1 2021 42.1 0.1 2022 43.4 0.1 2023 44.4 0.1 Years 2024-2028 234.7 0.3 Estimated future retirement benefit payments above are estimates and could change significantly based on differences between actuarial assumptions and actual events and decisions related to lump sum distribution options that are available to participants in certain plans. Defined Contribution Plan Contributions We sponsor a number of defined contribution plans. Contributions are determined under various formulas. Cash contributions by the Company related to these plans amounted to $29.5 million, $29.1 million and $22.7 million in 2018, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | 16. Income Taxes The components of income from continuing operations before income taxes and noncontrolling interests were as follows: (In millions) 2018 2017 2016 Domestic operations $ 456.7 $ 554.7 $ 513.8 Foreign operations 80.3 80.1 68.3 Income before income taxes and noncontrolling interests $ 537.0 $ 634.8 $ 582.1 A reconciliation of income taxes at the 35% federal statutory income tax rate for 2016 and 2017 and 21% for 2018 to the income tax provision reported was as follows: (In millions) 2018 2017 2016 Income tax expense computed at federal statutory income tax rate $ 112.8 $ 222.2 $ 203.7 Other income taxes, net of federal tax benefit 13.7 13.4 12.6 Foreign taxes at a different rate than U.S. federal statutory income tax rate 3.5 (8.3 ) (7.6 ) Tax benefit on income attributable to domestic production activities 0.0 (10.9 ) (13.0 ) Net adjustments for uncertain tax positions 4.1 11.6 13.2 Share-based compensation (ASU 2016-09) (2.1 ) (23.9 ) (27.8 ) Tax Act impact 5.5 (25.7 ) — Deferred tax impact of state tax rate changes 3.5 (2.0 ) (1.1 ) Valuation allowance increase (decrease) 3.0 (5.2 ) (2.1 ) Miscellaneous other, net 3.0 (11.7 ) (8.2 ) Income tax expense as reported $ 147.0 $ 159.5 $ 169.7 Effective income tax rate 27.4 % 25.1 % 29.2 % The 2018 effective income tax rate was favorably impacted by the corporate tax rate reduction from 35% to 21% under The Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The 2018 effective income tax rate was unfavorably impacted by the repeal of the Domestic Production Activity (Internal Revenue Code Section 199) Deduction, a valuation allowance increase, an adjustment to the provisional net benefit recorded in 2017 under the Tax Act, state and local taxes, unfavorable tax rates in foreign jurisdictions, and increases in uncertain tax positions. The 2017 effective income tax rate was favorably impacted by the Tax Act. The effective income tax rates for 2017 and 2016 were favorably impacted by a tax benefit related to share-based compensation, the tax benefit attributable to the Domestic Production Activity (Internal Revenue Code Section 199) Deduction and favorable tax rates in foreign jurisdictions, partially offset by state and local taxes and increases to uncertain tax positions. The Tax Act made significant changes to the U.S. Internal Revenue Code including a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, generally providing for an exemption from federal income tax for dividends received from foreign subsidiaries, and imposing a one- time The Tax Act included a provision for Global Intangible Low-Taxed A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) was as follows: (In millions) 2018 2017 2016 Unrecognized tax benefits — beginning of year $ 87.5 $ 58.2 $ 38.2 Gross additions — current year tax positions 9.1 31.0 10.7 Gross additions — prior year tax positions 9.3 10.9 10.4 Gross additions (reductions) — purchase accounting adjustments 1.0 4.0 9.7 Gross reductions — prior year tax positions (14.5 ) (9.4 ) (9.8 ) Gross reductions — settlements with taxing authorities (8.9 ) (7.2 ) (1.0 ) Unrecognized tax benefits — end of year $ 83.5 $ 87.5 $ 58.2 The amount of UTBs that, if recognized as of December 31, 2018, would affect the Company’s effective tax rate was $64.3 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $1.4 million to $3.5 million primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings. We classify interest and penalty accruals related to UTBs as income tax expense. In 2018, we recognized an interest and penalty expense of approximately $2.2 million. In 2017, we recognized an interest and penalty expense of approximately $2.0 million. In 2016, we recognized an interest and penalty expense of approximately $1.1 million. At December 31, 2018 and 2017, we had accruals for the payment of interest and penalties of $14.4 million and $11.8 million, respectively. We file income tax returns in the U.S., various state and foreign jurisdictions. The Company is open and subject to examination for tax years 2016 and subsequent by the U.S. Internal Revenue Service (“IRS”). In addition to the U.S., we have tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2013, Mexico for years after 2012 and China for years after 2014. Income taxes in 2018, 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Current Federal $ 93.5 $ 133.1 $ 150.4 Foreign 26.4 22.4 22.3 State and other 24.1 22.8 22.9 Deferred Federal, state and other 4.8 (27.2 ) (23.9 ) Foreign (1.8 ) 8.4 (2.0 ) Total income tax expense $ 147.0 $ 159.5 $ 169.7 The components of net deferred tax assets (liabilities) as of December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Deferred tax assets: Compensation and benefits $ 31.5 $ 22.1 Defined benefit plans 39.3 43.7 Capitalized inventories 16.1 11.1 Accounts receivable 5.4 7.8 Other accrued expenses 55.2 45.6 Net operating loss and other tax carryforwards 21.2 25.6 Valuation allowance (13.3 ) (11.0 ) Miscellaneous 2.5 3.7 Total deferred tax assets 157.9 148.6 Deferred tax liabilities: LIFO inventories 0.0 (4.2 ) Fixed assets (60.2 ) (44.5 ) Intangible assets (224.6 ) (232.0 ) Investment in partnership (3.8 ) (9.2 ) Miscellaneous (20.0 ) (16.1 ) Total deferred tax liabilities (308.6 ) (306.0 ) Net deferred tax liability $ (150.7 ) $ (157.4 ) In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2018 and 2017 as follows: (In millions) 2018 2017 Other assets 11.9 9.4 Deferred income taxes (162.6 ) (166.8 ) Net deferred tax liability $ (150.7 ) $ (157.4 ) As of December 31, 2018 and 2017, the Company had deferred tax assets relating to net operating losses, capital losses, and other tax carryforwards of $21.2 million and $25.6 million, respectively, of which approximately $7.1 million will expire between 2019 and 2023, and the remainder of which will expire in 2024 and thereafter. The Company has provided a valuation allowance to reduce the carrying value of certain of these deferred tax assets, as management has concluded that, based on the available evidence, it is more likely than not that the deferred tax assets will not be fully realized. Under the Tax Act, the accumulated foreign earnings and profits of the Company’s foreign subsidiaries as of December 31, 2017 are subject to a deemed repatriation tax and should not be subject to additional U.S. federal income tax upon an actual repatriation of those earnings. As a result, the Company has recorded an estimated tax liability of $9.3 million for foreign and state taxes that would be payable on a distribution of those earnings and profits. We have not provided for deferred taxes on the remaining book over tax outside basis differences of our foreign subsidiaries. The outside basis differences of foreign subsidiaries considered indefinitely reinvested totaled approximately $128.1million at December 31, 2018. The associated deferred tax liability on this basis difference is less than $5 million. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Other Charges | 17. Restructuring and Other Charges Pre-tax Year Ended December 31, 2018 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 16.8 $ 9.1 $ 0.3 $ 26.2 Plumbing 2.6 0.6 0.1 3.3 Doors & Security 4.7 2.4 (1.2 ) 5.9 Total $ 24.1 $ 12.1 $ (0.8 ) $ 35.4 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off (b) Selling, general and administrative expenses Restructuring and other charges in 2018 are largely related to our initiatives to consolidate and rationalize our manufacturing footprint and discontinue certain product lines in our Cabinets segment and severance costs within all our segments. Pre-tax Year Ended December 31, 2017 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 1.4 $ 1.6 $ 2.2 $ 5.2 Plumbing 2.8 — — 2.8 Doors & Security 4.1 5.6 0.8 10.5 Total $ 8.3 $ 7.2 $ 3.0 $ 18.5 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses Restructuring and other charges in 2017, primarily related to losses on disposal of inventory associated with exiting a product line in our Doors & Security segment and exiting a customer relationship in our Cabinets segment, as well as severance costs within our Doors & Security, Plumbing and Cabinets segments. Pre-tax Year Ended December 31, 2016 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 1.8 $ — $ — $ 1.8 Plumbing 1.6 0.3 0.2 2.1 Doors & Security 10.5 4.2 0.7 15.4 Total $ 13.9 $ 4.5 $ 0.9 $ 19.3 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses Restructuring and other charges in 2016 primarily related to severance costs and charges associated with the relocation of a manufacturing facility within our Doors & Security segment. Reconciliation of Restructuring Liability (In millions) Balance at 12/31/17 2018 Provision Cash Expenditures (a) Non-Cash Write-offs (b) Balance at 12/31/18 Workforce reduction costs $ 5.0 $ 21.4 $ (16.3 ) $ (0.2 ) $ 9.9 Other 0.8 2.7 (2.4 ) (0.5 ) 0.6 $ 5.8 $ 24.1 $ (18.7 ) $ (0.7 ) $ 10.5 (a) Cash expenditures primarily related to severance charges. (b) Non-cash (In millions) Balance at 12/31/16 2017 Provision Cash Expenditures (a) Non-Cash Write-offs (b) Balance at 12/31/17 Workforce reduction costs $ 2.4 $ 6.7 $ (3.9 ) $ (0.2 ) $ 5.0 Other 0.6 1.6 (1.3 ) (0.1 ) 0.8 $ 3.0 $ 8.3 $ (5.2 ) $ (0.3 ) $ 5.8 (a) Cash expenditures primarily related to severance charges. (b) Non-cash |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments | 18. Commitments Purchase Obligations Purchase obligations of the Company as of December 31, 2018 were $369.9 million, of which $342.4 million is due within one year. Purchase obligations include contracts for raw materials and finished goods purchases, selling and administrative services, and capital expenditures. Lease Commitments Future minimum rental payments under non-cancelable (In millions) 2019 $ 37.8 2020 29.6 2021 23.4 2022 18.9 2023 13.8 Remainder 58.8 Total minimum rental payments $ 182.3 Total rental expense for all operating leases (reduced by immaterial amounts from subleases) amounted to $48.4 million, $42.1 million and $43.5 million in 2018, 2017 and 2016, respectively. Product Warranties We generally record warranty expense related to contractual warranty terms at the time of sale. We may also provide customer concessions for claims made outside of the contractual warranty terms and those expenses are recorded in the period in which the concession is made. We offer our customers various warranty terms based on the type of product that is sold. Warranty expense is determined based on historic claim experience and the nature of the product category. The following table summarizes activity related to our product warranty liability for the years ended December 31, 2018, 2017 and 2016. (In millions) 2018 2017 2016 Reserve balance at the beginning of the year $ 17.2 $ 16.2 $ 16.0 Provision for warranties issued 25.1 25.1 25.8 Settlements made (in cash or in kind) (25.7 ) (24.3 ) (25.5 ) Acquisition 8.9 — 0.3 Foreign currency (0.6 ) 0.2 (0.4 ) Reserve balance at end of year $ 24.9 $ 17.2 $ 16.2 |
Information on Business Segment
Information on Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Information on Business Segments | 19. Information on Business Segments We report our operating segments based on how operating results are regularly reviewed by our chief operating decision maker for making decisions about resource allocations to segments and assessing performance. The Company’s operating segments and types of products from which each segment derives revenues are described below. The Cabinets segment includes custom, semi-custom and stock cabinetry for the kitchen, bath and other parts of the home under brand names including Aristokraft, Diamond, Mid-Continent, Therma-Tru The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. (In millions) 2018 2017 2016 Net sales: Cabinets $ 2,418.6 $ 2,467.1 $ 2,397.8 Plumbing 1,883.3 1,720.8 1,534.4 Doors & Security 1,183.2 1,095.4 1,052.7 Net sales $ 5,485.1 $ 5,283.3 $ 4,984.9 Net sales to two of the Company’s customers, The Home Depot, Inc. (“The Home Depot”) and Lowe’s Companies, Inc. (“Lowe’s”) each accounted for greater than 10% of the Company’s net sales in 2018, 2017 and 2016. All segments sell to both The Home Depot and Lowe’s. Net sales to The Home Depot were 13%, 13% and 13% of net sales in 2018, 2017 and 2016, respectively. Net sales to Lowe’s were 14%, 14% and 14% of net sales in 2018, 2017 and 2016, respectively. (In millions) 2018 2017 2016 Operating income: Cabinets $ 143.5 $ 267.2 $ 257.8 Plumbing (b) 375.3 358.5 314.9 Doors & Security (b) 155.6 146.9 126.4 Less: Corporate expenses (a) (b) (79.2 ) (90.1 ) (80.5 ) Operating income $ 595.2 $ 682.5 $ 618.6 (a) General and administrative expense $ (79.2 ) $ (85.0 ) $ (80.5 ) Long-lived asset impairment — (5.1 ) — Total Corporate expenses $ (79.2 ) $ (90.1 ) $ (80.5 ) (b) We revised our previously reported results in 2017 and 2016 for ASU 2017-07, (In millions) 2018 2017 2016 Total assets: Cabinets $ 2,318.7 $ 2,416.3 $ 2,349.4 Plumbing 1,943.1 1,854.1 1,626.8 Doors & Security 1,526.0 1,032.2 995.1 Corporate 176.8 208.8 157.2 Total assets $ 5,964.6 $ 5,511.4 $ 5,128.5 Depreciation expense: Cabinets $ 50.9 $ 42.8 $ 40.1 Plumbing 29.1 26.9 24.6 Doors & Security 30.2 25.9 26.2 Corporate 3.3 3.0 3.7 Depreciation expense $ 113.5 $ 98.6 $ 94.6 Amortization of intangible assets: Cabinets $ 19.6 $ 19.7 $ 18.4 Plumbing 10.4 7.7 3.6 Doors & Security 6.1 4.3 6.1 Amortization of intangible assets $ 36.1 $ 31.7 $ 28.1 Capital expenditures: Cabinets $ 73.8 $ 63.4 $ 61.7 Plumbing 41.4 43.5 48.3 Doors & Security 34.3 40.1 38.8 Corporate 0.6 18.0 0.5 Capital expenditures, gross 150.1 165.0 149.3 Less: proceeds from disposition of assets (6.1 ) (0.4 ) (3.9 ) Capital expenditures, net $ 144.0 $ 164.6 $ 145.4 Net sales by geographic region (a) United States $ 4,606.6 $ 4,492.2 $ 4,258.5 Canada 433.1 427.6 406.4 China 260.6 202.3 175.0 Other international 184.8 161.2 145.0 Net sales $ 5,485.1 $ 5,283.3 $ 4,984.9 Property, plant and equipment, net: United States $ 628.9 $ 562.3 $ 499.8 Mexico 103.4 89.0 90.8 Canada 46.0 50.5 45.5 China 22.5 24.8 22.7 Other international 12.6 13.4 3.7 Property, plant and equipment, net $ 813.4 $ 740.0 $ 662.5 (a) Based on country of destination |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data | 20. Quarterly Financial Data Unaudited (In millions, except per share amounts) 2018 1 st 2 nd 3 rd 4 th Full Year Net sales $ 1,254.6 $ 1,429.0 $ 1,380.8 $ 1,420.7 $ 5,485.1 Gross profit 439.6 524.1 493.9 501.8 1,959.4 Operating income 119.4 188.6 147.1 140.1 595.2 Income from continuing operations, net of tax 75.1 129.7 99.9 85.3 390.0 Income (loss) from discontinued operations, net of tax (0.2 ) — — — (0.2 ) Net income 74.9 129.7 99.9 85.3 389.8 Net income attributable to Fortune Brands 75.0 129.6 99.8 85.2 389.6 Basic earnings (loss) per common share Continuing operations 0.50 0.89 0.70 0.60 2.69 Discontinued operations — — — — — Net income attributable to Fortune Brands 0.50 0.89 0.70 0.60 2.69 Diluted earnings (loss) per common share Continuing operations 0.49 0.88 0.69 0.60 2.66 Discontinued operations — — — — — Net income attributable to Fortune Brands 0.49 0.88 0.69 0.60 2.66 2017 1 st 2 nd 3 rd 4 th Full Year Net sales $ 1,186.8 $ 1,365.4 $ 1,348.6 $ 1,382.5 $ 5,283.3 Gross profit (a) 414.1 513.3 505.3 492.3 1,925.0 Operating income (a) 111.0 209.2 199.5 162.8 682.5 Income from continuing operations, net of tax 77.4 140.3 129.6 128.0 475.3 Income (loss) from discontinued operations, net of tax — (2.6 ) — — (2.6 ) Net income 77.4 137.7 129.6 128.0 472.7 Net income attributable to Fortune Brands 77.4 137.7 129.5 128.0 472.6 Basic earnings (loss) per common share Continuing operations 0.50 0.91 0.84 0.84 3.10 Discontinued operations — (0.02 ) — — (0.02 ) Net income attributable to Fortune Brands 0.50 0.89 0.84 0.84 3.08 Diluted earnings (loss) per common share Continuing operations 0.50 0.90 0.83 0.83 3.05 Discontinued operations — (0.02 ) — — (0.02 ) Net income attributable to Fortune Brands 0.50 0.88 0.83 0.83 3.03 (a) Amounts revised to reflect adoption of ASU 2017-07 In 2018, we recorded pre-tax In 2017, we recorded pre-tax |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share | 21. Earnings Per Share The computations of earnings (loss) per common share were as follows: (In millions, except per share data) 2018 2017 2016 Income from continuing operations, net of tax $ 390.0 $ 475.3 $ 412.4 Less: Noncontrolling interests 0.2 0.1 — Income from continuing operations for EPS 389.8 475.2 412.4 Income (loss) from discontinued operations (0.2 ) (2.6 ) 0.8 Net income attributable to Fortune Brands $ 389.6 $ 472.6 $ 413.2 Earnings (loss) per common share Basic Continuing operations $ 2.69 $ 3.10 $ 2.67 Discontinued operations — (0.02 ) 0.01 Net income attributable to Fortune Brands common stockholders $ 2.69 $ 3.08 $ 2.68 Diluted Continuing operations $ 2.66 $ 3.05 $ 2.61 Discontinued operations — (0.02 ) 0.01 Net income attributable to Fortune Brands common stockholders $ 2.66 $ 3.03 $ 2.62 Basic average shares outstanding 144.6 153.2 154.3 Stock-based awards 1.8 2.6 3.5 Diluted average shares outstanding 146.4 155.8 157.8 Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share 1.5 0.5 0.5 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense, Net | 22. Other Income, Net The components of other income, net for the years ended December 31, 2018, 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Defined benefit plan (a) $ (6.5 ) $ (9.6 ) $ (14.2 ) Asset impairment charge $ — $ 7.0 $ — Foreign currency (gains)/losses $ (2.0 ) $ 0.9 $ 2.8 Ineffective portion of cash flow hedge $ (3.8 ) — — Other items, net $ (4.0 ) — (1.2 ) Total other income, net $ (16.3 ) $ (1.7 ) $ (12.6 ) (a) Amounts revised to reflect adoption of ASU 2017-07 In the year ended December 31, 2018, the ineffective portion of cash flow hedges recognized in other items, net, was $3.8 million and insignificant in the years ended December 31, 2017 and 2016. During 2017, we recorded an impairment charge of $7.0 million pertaining to a cost method investment in a development stage home products company due to an other-than-temporary decline in its fair value. As a result of the impairment, the carrying value of the investment was reduced to zero and the Company is not subject to further impairment or funding obligations with regard to this investment. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies | 23. Contingencies Litigation The Company is a defendant in lawsuits that are ordinary routine litigation matters incidental to its businesses. It is not possible to predict the outcome of the pending actions, and, as with any litigation, it is possible that these actions could be decided unfavorably to the Company. The Company believes that there are meritorious defenses to these actions and that these actions will not have a material adverse effect upon the Company’s results of operations, cash flows or financial condition, and, where appropriate, these actions are being vigorously contested. Accordingly the Company believes the likelihood of material loss is remote. Environmental Compliance with federal, state and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, did not have a material effect on capital expenditures, earnings or the competitive position of Fortune Brands. Several of our subsidiaries have been designated as potentially responsible parties (“PRPs”) under “Superfund” or similar state laws. As of December 31, 2018, ten such instances have not been dismissed, settled or otherwise resolved. In 2018, none of our subsidiaries were identified as a PRP in a new instance and no instances were settled, dismissed or otherwise resolved. In most instances where our subsidiaries are named as a PRP, we enter into cost-sharing arrangements with other PRPs. We give notice to insurance carriers of potential PRP liability, but very rarely, if ever, receive reimbursement from insurance for PRP costs. We believe that the cost of complying with the present environmental protection laws, before considering estimated recoveries either from other PRPs or insurance, will not have a material adverse effect on our results of operations, cash flows or financial condition. At December 31, 2018 and 2017, we had accruals of $0.6 million and $0.7 million, respectively, relating to environmental compliance and cleanup including, but not limited to, the above mentioned Superfund sites. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts For the years ended December 31, 2018, 2017 and 2016 (In millions) Balance at Charged to Reclassifications (c) Write-offs (a) Business (b) Balance at 2018: Allowance for cash discounts and sales allowances $ 84.0 $ 216.1 $ (16.0 ) $ 199.5 $ — $ 84.6 Allowance for doubtful accounts 3.3 — — (0.1 ) 0.3 3.7 Allowance for deferred tax assets 11.0 2.3 — — — 13.3 2017: Allowance for cash discounts, returns and sales allowances $ 68.2 $ 205.7 $ 3.0 $ 192.9 $ — $ 84.0 Allowance for doubtful accounts 7.4 0.2 — 4.5 0.2 3.3 Allowance for deferred tax assets 16.4 (5.4 ) — — — 11.0 2016: Allowance for cash discounts, returns and sales allowances $ 50.3 $ 148.6 — $ 130.7 $ — $ 68.2 Allowance for doubtful accounts 5.8 4.3 — 2.7 — 7.4 Allowance for deferred tax assets 19.7 (3.3 ) — — — 16.4 (a) Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. (b) Represents purchase accounting adjustment related to the Fiberon acquisition within our Doors and Security segment in 2018. 2017 represents a valuation allowance on an acquired net operating loss carryforward (Norcraft Canada). (c) Represents reclassification of reserve for returns to a separate liability account due to our adoption of the revenue recognition standard and a reclassification of sales allowances to certain customer program liabilities across all segments during 2018. 2017 represents a reclassification of certain customer program liabilities to sales allowances (reduction to accounts receivable) in the Doors & Security segment. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts |
Inventories | Inventories first-in, first-out During the fourth quarter of 2018, we determined that it was preferable to change our accounting policy from last-in, first-out |
Property, Plant and Equipment | Property, Plant and Equipment Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years |
Long-lived Assets | Long-lived Assets During 2017, we recorded an impairment of $5.1 million related to a long lived asset to be disposed of in selling, general and administrative expenses. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets We evaluate the recoverability of goodwill using a weighting of the income (80%) and market (20%) approaches. For the income approach, we use a discounted cash flow model, estimating the future cash flows of the reporting units to which the goodwill relates, and then discounting the future cash flows at a market-participant-derived discount rate. In determining the estimated future cash flows, we consider current and projected future levels of income based on management’s plans for that business; business trends, prospects and market and economic conditions; and market-participant considerations. Furthermore, our projection for the U.S. home products market is inherently subject to a number of uncertain factors, such as employment, home prices, credit availability, new home starts and the rate of home foreclosures. For the market approach, we apply market multiples for peer groups to the current operating results of the reporting units to determine each reporting unit’s fair value. The Company’s reporting units are operating segments, or one level below operating segments when appropriate. When the estimated fair value of a reporting unit is less than its carrying value, we measure and recognize the amount of the goodwill impairment loss based on that difference. Purchased intangible assets other than goodwill are amortized over their useful lives unless those lives are determined to be indefinite. The determination of the useful life of an intangible asset other than goodwill is based on factors including historical tradename performance with respect to consumer name recognition, geographic market presence, market share, and plans for ongoing tradename support and promotion. Certain of our tradenames have been assigned an indefinite life as we currently anticipate that these tradenames will contribute cash flows to the Company indefinitely. Indefinite-lived intangible assets are not amortized, but are evaluated at least annually to determine whether the indefinite useful life is appropriate. We measure the fair value of identifiable intangible assets upon acquisition and we review for impairment annually in the fourth quarter, and whenever market or business events indicate there may be a potential impairment of that intangible asset. Impairment losses are recorded to the extent that the carrying value of the indefinite-lived intangible asset exceeds its fair value. We measure fair value using the standard relief-from-royalty approach which estimates the present value of royalty income that could be hypothetically earned by licensing the brand name to a third party over the remaining useful life. The determination of fair value using this technique requires the use of estimates and assumptions related to the projected tradename revenue growth, the assumed royalty rate and the discount rate. We first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors include changes in volume, customers and the industry. If it is deemed more likely than not that an intangible asset is impaired, we will perform a quantitative impairment test. The events and/or circumstances that could have a potential negative effect on the estimated fair value of our reporting units and indefinite-lived tradenames include: actual new construction and repair and remodel growth rates that fall below our assumptions, actions of key customers, increases in discount rates, continued economic uncertainty, higher levels of unemployment, weak consumer confidence, lower levels of discretionary consumer spending and a decrease in royalty rates. We cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill and indefinite-lived intangible assets. |
Equity securities | Investments in Equity Securities non-controlling During the fourth quarter of 2018, our Plumbing segment entered into strategic partnerships with several companies who incorporate emerging technology into plumbing-related products, and at the same time acquired non-controlling shut-off As of December 31, 2018, all of our investments in our strategic partners do not have readily determinable fair values. As of December 31, 2018 and 2017, the carrying value of our investments was $28.7 million and zero, respectively, which is included in other assets within our Consolidated Balance Sheet. There were no impairments or other changes resulting from observable prices changes recorded during the year ended December 31, 2018. Impairments of $7.0 million were recorded within Other income, net within the Consolidated Statements of Income during the year ended December 31, 2017 (see Note 22). |
Defined Benefit Plans | Defined Benefit Plans We record amounts relating to these plans based on calculations in accordance with ASC requirements for Compensation – Retirement Benefits, which include various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and health care cost trend rates. We recognize changes in the fair value of pension plan assets and net actuarial gains or losses in excess of 10 percent of the greater of the fair value of pension plan assets or each plan’s projected benefit obligation (the “corridor”) in earnings immediately upon remeasurement, which is at least annually in the fourth quarter of each year. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current economic conditions and trends. The discount rate used to measure obligations is based on a spot-rate yield curve on a plan-by-plan |
Insurance Reserves | Insurance Reserves |
Litigation Contingencies | Litigation Contingencies |
Income Taxes | Income Taxes In accordance with ASC requirements for Income Taxes, we establish deferred tax liabilities or assets for temporary differences between financial and tax reporting bases and subsequently adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance reducing deferred tax assets when it is more likely than not that such assets will not be realized. We record liabilities for uncertain income tax positions based on a two-step The Tax Act made significant changes to the U.S. Internal Revenue Code including a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, generally providing for an exemption from federal income tax for dividends received from foreign subsidiaries, and imposing a one- time The Tax Act included a provision for Global Intangible Low-Taxed |
Revenue Recognition | Revenue Recognition |
Cost of Products Sold | Cost of Products Sold |
Customer Program Costs | Customer Program Costs |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses . Advertising costs, which amounted to $243.6 million, $233.2 million and $199.1 million in 2018, 2017 and 2016, respectively, are principally expensed as incurred. Advertising costs paid to customers as pricing rebates include product displays, marketing administration costs, media production costs and point of sale materials. Advertising costs recorded as a reduction to net sales, primarily cooperative advertising, were $72.4 million, $65.6 million and $52.5 million in 2018, 2017 and 2016, respectively. Advertising costs recorded in selling, general and administrative expenses were $171.2 million, $167.6 million and $146.6 million in 2018, 2017 and 2016, respectively. Research and development expenses include product development, product improvement, product engineering and process improvement costs. Research and development expenses, which were $50.3 million, $50.7 million and $53.1 million in 2018, 2017 and 2016, respectively, are expensed as incurred. |
Stock-based Compensation | Stock-based Compensation |
Earnings Per Share | Earnings Per Share |
Foreign Currency Translation | Foreign Currency Translation |
Derivative Financial Instruments | Derivative Financial Instruments Deferred currency gains/(losses) of $2.2 million, $0.4 million and $(3.5) million (before tax impact) were reclassified into earnings for the year ended December 31, 2018, 2017 and 2016, respectively. Based on foreign exchange rates as of December 31, 2018, we estimate that $3.3 million of net currency derivative gains included in AOCI as of December 31, 2018 will be reclassified to earnings within the next twelve months. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, 2014-09 A majority of our sales revenue continues to be recognized when products are shipped from our facilities to our customers. Previously, for certain products, we recognized sales revenue at destination as we determined risks and rewards transferred at that point. We now recognize sales revenue for these customers at the shipping point of the products consistent with the respective contractual terms. See Note 14, “Revenue,” for further information. Leases In February 2016, the FASB issued ASU 2016-02, “right-of-use” 2018-01, 2018-10 2018-11, 2016-02 We plan to adopt the standard in the first quarter of 2019 using the transition method introduced by ASU 2018-11, While we are continuing to finalize our assessment of the impacts of the standard, we have completed our scoping reviews, identified our significant leases by segment and by asset type, and made progress in developing accounting policies upon adoption of the standard. We have implemented an accounting system to support the future state leasing process and input the data from substantially all of our existing leases into the system. We continue to refine our future process design as part of the overall system implementation. Upon adoption, we expect to recognize a lease liability, with an offsetting increase to right-of-use right-of-use Presentation of Net Periodic Pension and Postretirement Cost In March 2017, the FASB issued ASU 2017-07, which 2014-09 Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, non-substantive Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Restricted Cash In November 2016, the FASB issued ASU 2016-18, Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, Classification of Certain Cash Receipts and Cash Payments In September 2016, the FASB issued ASU 2016-15, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, available-for-sale Clarifying Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, non-customer. Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12 Financial Instruments — Credit Losses In June 2016, the FASB issued ASU 2016-13, off-balance-sheet Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07 Codification Improvements In July 2018, the FASB issued ASU 2018-09 Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14 Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 internal-use |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Estimated Useful Lives of Property, Plant and Equipment | Estimated useful lives of the related assets are as follows: Buildings and leasehold improvements 15 to 40 years Machinery and equipment 3 to 15 years Software 3 to 7 years |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Information on Balance Sheets | Supplemental information on our year-end (In millions) 2018 (a) 2017 Inventories: Raw materials and supplies $ 227.4 $ 224.9 Work in process 66.4 58.3 Finished products 385.1 297.6 Total inventories $ 678.9 $ 580.8 Property, plant and equipment: Land and improvements $ 66.8 $ 58.7 Buildings and improvements to leaseholds 500.1 464.1 Machinery and equipment 1,249.0 1,167.5 Construction in progress 95.8 90.1 Property, plant and equipment, gross 1,911.7 1,780.4 Less: accumulated depreciation 1,098.3 1,040.4 Property, plant and equipment, net of accumulated depreciation $ 813.4 $ 740.0 Other current liabilities: Accrued salaries, wages and other compensation $ 85.9 $ 105.9 Accrued customer programs 167.8 142.8 Accrued taxes 57.7 61.4 Dividends payable 30.9 30.4 Other accrued expenses 165.8 137.5 Total other current liabilities $ 508.1 $ 478.0 (a) 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed as of the date of the acquisition. (In millions) Accounts receivable $ 19.2 Inventories 49.4 Property, plant and equipment 49.0 Goodwill 173.4 Identifiable intangible assets 195.0 Other assets 4.8 Total assets 490.8 Accounts payable 16.5 Other liabilities and accruals 14.5 Net assets acquired $ 459.8 |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Change in Net Carrying Amount of Goodwill by Segment | (In millions) Cabinets Plumbing Doors & Security Total Goodwill Balance at December 31, 2016 (a) $ 924.3 $ 670.2 $ 239.3 $ 1,833.8 2017 translation adjustments 2.0 3.3 1.2 6.5 Acquisition-related adjustments — 71.7 — 71.7 Balance at December 31, 2017 (a) $ 926.3 $ 745.2 $ 240.5 $ 1,912.0 2018 translation adjustments (2.3 ) (5.9 ) (1.4 ) (9.6 ) Acquisition-related adjustments — 4.4 173.5 177.9 Balance at December 31, 2018 (a) $ 924.0 $ 743.7 $ 412.6 $ 2,080.3 (a) Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. |
Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets | The gross carrying value and accumulated amortization by class of intangible assets as of December 31, 2018 and 2017 were as follows: As of December 31, 2018 As of December 31, 2017 (In millions) Gross Accumulated Net Book Gross Accumulated Net Book Indefinite-lived tradenames $ 673.9 $ — $ 673.9 $ 709.9 $ — $ 709.9 Amortizable intangible assets Tradenames 19.8 (11.9 ) 7.9 15.7 (9.9 ) 5.8 Customer and contractual relationships 800.3 (260.2 ) 540.1 663.8 (232.0 ) 431.8 Patents/proprietary technology 73.5 (48.6 ) 24.9 60.2 (45.3 ) 14.9 Total 893.6 (320.7 ) 572.9 739.7 (287.2 ) 452.5 Total identifiable intangibles $ 1,567.5 $ (320.7 ) $ 1,246.8 $ 1,449.6 $ (287.2 ) $ 1,162.4 |
External Debt and Financing A_2
External Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Components of External Long-Term Debt | The components of external long-term debt were as follows: (In millions) 2018 2017 $400 million unsecured senior note due June 2020 $ 399.0 $ 398.3 $500 million unsecured senior note due June 2025 495.0 494.3 $600 million unsecured senior note due September 2023 595.0 — $1,250 million revolving credit agreement due June 2021 320.0 615.0 $525 million term loan due March 2019 525.0 — Total debt 2,334.0 1,507.6 Less: current portion 525.0 — Total long-term debt $ 1,809.0 $ 1,507.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Values of Derivative Instruments | The fair values of foreign exchange and commodity derivative instruments on the consolidated balance sheets as of December 31, 2018 and 2017 were: Fair Value (In millions) Location 2018 2017 Assets: Foreign exchange contracts Other current assets $ 5.3 $ 0.8 Commodity contracts Other current assets — 0.2 Net investment hedges Other current assets 0.7 — Total assets $ 6.0 $ 1.0 Liabilities: Foreign exchange contracts Other current liabilities $ 1.9 $ 5.6 Net investment hedges Other current liabilities — 0.8 Total liabilities $ 1.9 $ 6.4 |
Effects of Derivative Financial Instruments on Consolidated Statements of Income | The effects of derivative financial instruments on the consolidated statements of income in 2018, 2017 and 2016 were: (In millions) Gain (Loss) Recognized in Income Type of hedge Location 2018 2017 2016 Cash flow Cost of products sold $ 2.0 $ 0.9 $ (3.5 ) Fair value Other (income) expense, net 3.7 (2.0 ) 2.0 Total $ 5.7 $ (1.1 ) $ (1.5 ) The effective portion of cash flow hedges recognized in other comprehensive income were net gains (losses) of $10.1 million and $(1.8) million in 2018 and 2017, respectively. In the year ended December 31, 2018, the ineffective portion of cash flow hedges recognized in other income, net, was $3.8 million and insignificant in the years ended December 31, 2017 and 2016. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Carrying Value and Fair Value of Debt | The carrying value and fair value of debt as of December 31, 2018 and 2017 were as follows: (In millions) December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Revolving credit facility $ 320.0 $ 320.0 $ 615.0 $ 615.0 Term Loan 525.0 525.0 — — Senior Notes, net of underwriting commissions and price discounts 1,489.0 1,490.4 892.6 926.3 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 were as follows: (In millions) Fair Value 2018 2017 Assets: Derivative asset financial instruments (level 2) $ 6.0 $ 1.0 Deferred compensation program assets (level 2) 9.3 7.5 Total assets $ 15.3 $ 8.5 Liabilities: Derivative liability financial instruments (level 2) $ 1.9 $ 6.4 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock and Treasury Stock Activity | The number of shares of common stock and treasury stock and the share activity for 2018 and 2017 were as follows: Common Shares Treasury Shares 2018 2017 2018 2017 Balance at the beginning of the year 151,906,797 153,412,050 27,879,929 24,305,930 Stock plan shares issued 822,878 2,068,746 — — Shares surrendered by optionees (230,550 ) (180,537 ) 230,550 180,537 Common stock repurchases (12,000,144 ) (3,393,462 ) 12,000,144 3,393,462 Balance at the end of the year 140,498,981 151,906,797 40,110,623 27,879,929 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2018 and 2017 were as follows: (In millions) Details about Accumulated Other Comprehensive Affected Line Item in the 2018 2017 Gains (losses) on cash flow hedges Foreign exchange contracts $ 2.2 $ 0.4 Cost of products sold Interest rate contracts 0.1 — Other income, net Commodity contracts (0.2 ) 0.5 Cost of products sold 2.1 0.9 Total before tax (0.4 ) (0.1 ) Tax expense $ 1.7 $ 0.8 Net of tax Defined benefit plan items Recognition of prior service cost $ — $ 5.1 (a) Recognition of actuarial (losses) gains (3.8 ) 0.5 (a) (3.8 ) 5.6 Total before tax 0.8 (2.0 ) Tax expense $ (3.0 ) $ 3.6 Net of tax Total reclassifications for the period $ (1.3 ) $ 4.4 Net of tax (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 15, “Defined Benefit Plans,” for additional information. |
After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income | The after-tax (In millions) Foreign Derivative Hedging Gain Defined Plan Accumulated Balance at December 31, 2015 $ (13.3 ) $ 2.1 $ (41.3 ) $ (52.5 ) Amounts classified into accumulated other comprehensive (loss) income (14.7 ) (6.2 ) 5.3 (15.6 ) Amounts reclassified from accumulated other comprehensive (loss) income into earnings — 3.5 (7.3 ) (3.8 ) Net current period other comprehensive (loss) income (14.7 ) (2.7 ) (2.0 ) (19.4 ) Balance at December 31, 2016 $ (28.0 ) $ (0.6 ) $ (43.3 ) $ (71.9 ) Amounts classified into accumulated other comprehensive (loss) income 33.8 (1.0 ) 4.3 37.1 Amounts reclassified from accumulated other comprehensive (loss) income into earnings — (0.8 ) (3.6 ) (4.4 ) Net current period other comprehensive (loss) income 33.8 (1.8 ) 0.7 32.7 Balance at December 31, 2017 $ 5.8 $ (2.4 ) $ (42.6 ) $ (39.2 ) Amounts classified into accumulated other comprehensive (loss) income (31.1 ) 8.3 (6.3 ) (29.1 ) Amounts reclassified into earnings — (1.7 ) 3.0 1.3 Net current period other comprehensive (loss) income (31.1 ) 6.6 (3.3 ) (27.8 ) Balance at December 31, 2018 $ (25.3 ) $ 4.2 $ (45.9 ) $ (67.0 ) |
Stock-Based Compensation (Upd_2
Stock-Based Compensation (Updated by Corporate) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pre-Tax Stock-Based Compensation Expense from Continuing Operations | Stock-based compensation expense from continuing operations was as follows: (In millions) 2018 2017 2016 Stock option awards $ 8.6 $ 7.4 $ 7.2 Restricted stock units 21.3 21.6 17.2 Performance awards 6.3 13.6 6.7 Director awards 1.0 1.0 0.9 Total pre-tax 37.2 43.6 32.0 Tax benefit 6.2 15.2 11.4 Total after tax expense $ 31.0 $ 28.4 $ 20.6 |
Restricted Stock Units Activity | A summary of activity with respect to restricted stock units outstanding under the Plans for the year ended December 31, 2018 was as follows: Number of Restricted Weighted-Average Fair Value Non-vested 728,065 $ 54.59 Granted 356,860 61.07 Vested (373,593 ) 52.92 Forfeited (50,957 ) 59.87 Non-vested 660,375 $ 58.63 |
Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options | The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table: 2018 2017 2016 Current expected dividend yield 1.3% 1.4% 1.4% Expected volatility 24.0% 26.0% 30.0% Risk-free interest rate 2.6% 1.9% 1.3% Expected term 5 years 5.5 years 5.5 years |
Stock Option Activity | A summary of Fortune Brands stock option activity related to Fortune Brands and former employees of Fortune Brands, Inc., the Company from which we spun off from in 2011, for the year ended December 31, 2018 was as follows: Options Weighted- Outstanding at December 31, 2017 3,682,958 $ 36.28 Granted 628,614 63.44 Exercised (214,727 ) 22.86 Expired/forfeited (73,023 ) 59.07 Outstanding at December 31, 2018 4,023,822 $ 40.83 |
Options Outstanding and Exercisable | Options outstanding and exercisable at December 31, 2018 were as follows: Options Outstanding (a) Options Exercisable (b) Range Of Exercise Prices Options Weighted- Average Weighted- Options Weighted- $9.00 to $12.99 104,500 2.0 $ 12.30 104,500 $ 12.30 13.00 to 20.00 1,096,463 2.5 16.37 1,096,463 16.37 20.01 to 65.41 2,822,859 6.8 51.38 1,731,059 45.91 4,023,822 5.5 $ 40.83 2,932,022 $ 33.67 (a) At December 31, 2018, the aggregate intrinsic value of options outstanding was $28.1 million. (b) At December 31, 2018, the weighted-average remaining contractual life of options exercisable was 4.4 years and the aggregate intrinsic value of options exercisable was $28.1 million. |
Summarizes Information of Performance Share Awards | The following table summarizes information about Number of Weighted-Average Grant-Date Fair Value Non-vested 428,328 $ 52.35 Granted 140,071 63.44 Vested (136,822 ) 47.48 Forfeited (22,486 ) 57.41 Non-vested 409,091 $ 57.50 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation of Revenue | The Company disaggregates revenue from contracts with customers into (i) major sales distribution channels in the U.S. and (ii) total sales to customers outside the U.S. market as these categories depict the nature, amount, timing and uncertainty of revenues and cash flows that are affected by economic factors. The following table disaggregates our consolidated revenue by major sales distribution channels for the year ended December 31, 2018. (In millions) December 31, 2018 Wholesalers (1) $ 2,607.3 Home Center retailers (2) 1,452.3 Other retailers (3) 311.6 Builder direct 235.4 U.S. net sales 4,606.6 International (4) 878.5 Net sales $ 5,485.1 (1) Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. (2) Represents sales to the three largest “Do-It-Yourself” (3) Represents sales principally to our mass merchant and standalone independent e-commerce (4) Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Obligations and Funded Status | (In millions) Pension Benefits Postretirement Benefits Obligations and Funded Status at December 31 2018 2017 2018 2017 Change in the Projected Benefit Obligation (PBO): Projected benefit obligation at beginning of year $ 832.4 $ 791.7 $ 1.6 $ 3.6 Service cost 0.5 0.6 — — Interest cost 30.7 33.3 — — Plan amendments — — — — Actuarial loss (gain) (63.1 ) 40.6 (0.2 ) (1.4 ) Benefits paid (37.3 ) (33.8 ) — (0.4 ) Foreign exchange — — — (0.2 ) Projected benefit obligation at end of year $ 763.2 $ 832.4 $ 1.4 $ 1.6 Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) $ 763.2 $ 832.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 656.6 $ 577.7 $ — $ — Actual return on plan assets (30.7 ) 83.2 — — Employer contributions 11.0 29.5 — 0.5 Benefits paid (37.3 ) (33.8 ) — (0.5 ) Fair value of plan assets at end of year $ 599.6 $ 656.6 $ — $ — Funded status (Fair value of plan assets less PBO) $ (163.6 ) $ (175.8 ) $ (1.4 ) $ (1.6 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits (In millions) 2018 2017 2018 2017 Current benefit payment liability $ (1.5 ) $ (1.1 ) $ (0.2 ) $ (0.2 ) Accrued benefit liability (162.1 ) (174.7 ) (1.2 ) (1.4 ) Net amount recognized $ (163.6 ) $ (175.8 ) $ (1.4 ) $ (1.6 ) |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The retrospective impact of adopting ASU 2017-07 (In millions) 2017 2016 Increase to cost of products sold $ 7.5 $ 8.5 Increase to selling, general and administrative expenses 2.1 5.6 Decrease to operating income $ (9.6 ) $ (14.1 ) |
Amounts in Accumulated Other Comprehensive Loss that have not yet been Recognized as Components of Net Periodic Benefit Cost | The amounts in accumulated other comprehensive loss on the consolidated balance sheets that have not yet been recognized as components of net periodic benefit cost were as follows: (In millions) Pension Benefits Postretirement Benefits Net actuarial loss at December 31, 2016 $ 73.4 $ — Recognition of actuarial (loss) gain (0.9 ) 1.4 Current year actuarial gain (5.3 ) (1.4 ) Net actuarial loss at December 31, 2017 $ 67.2 $ — Recognition of actuarial (loss) gain (3.9 ) 0.1 Current year actuarial loss (gain) 8.5 (0.4 ) Net actuarial loss at December 31, 2018 $ 71.8 $ (0.3 ) Net prior service cost (credit) at December 31, 2016 $ — $ (5.1 ) Amortization — 5.1 Net prior service cost (credit) at December 31, 2017 $ — $ — Amortization — — Net prior service cost (credit) at December 31, 2018 $ — $ — Total at December 31, 2018 $ 71.8 $ (0.3 ) |
Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits | Components of net periodic benefit cost were as follows: Components of Net Periodic Benefit (Income) Cost Pension Benefits Postretirement Benefits (In millions) 2018 2017 2016 2018 2017 2016 Service cost $ 0.5 $ 0.6 $ 9.6 $ — $ — $ — Interest cost 30.7 33.3 34.4 — — 0.3 Expected return on plan assets (41.0 ) (37.3 ) (37.2 ) — — — Recognition of actuarial losses (gains) 3.9 0.9 — (0.1 ) (1.4 ) 1.9 Amortization of prior service credits — — — — (5.1 ) (13.5 ) Net periodic benefit (income) cost $ (5.9 ) $ (2.5 ) $ 6.8 $ (0.1 ) $ (6.5 ) $ (11.3 ) |
Schedule of Assumptions Used | Assumptions Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted-Average Assumptions Used to Discount rate 4.4% 3.8% 4.3% 4.2% 3.4% 3.4% Rate of compensation increase — — 4.0% — — — Weighted-Average Assumptions Used to Discount rate 3.8% 4.3% 4.6% 3.4% 3.4% 4.1% Expected long-term rate of return on plan assets 6.0% 6.4% 6.6% — — — Rate of compensation increase — — 4.0% — — — |
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost | Postretirement 2018 2017 Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost at December 31: Health care cost trend rate assumed for next year 6.9/8.0 % (a) 7.1/8.4 % (a) Rate that the cost trend rate is assumed to decline (the ultimate trend rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2026 (a) The pre-65 post-65 |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point (In millions) 1-Percentage- 1-Percentage- Effect on postretirement benefit obligation (0.1 ) 0.1 |
Fair Value of Pension Assets by Major Category of Plan Assets | The fair value of the pension assets by major category of plan assets as of December 31, 2018 and 2017 were as follows: (In millions) Total as of 2018 2017 Group annuity/insurance contracts (level 3) $ 23.6 $ 23.3 Collective trusts: Cash and cash equivalents 7.7 12.5 Equity 197.7 285.9 Fixed income 324.6 277.7 Multi-strategy hedge funds 22.0 24.6 Real estate 24.0 32.6 Total $ 599.6 $ 656.6 |
Reconciliation of Level Three Measurements | A reconciliation of Level 3 measurements was as follows: Group annuity/ (In millions) 2018 2017 January 1 $ 23.3 $ 22.8 Actual return on assets related to assets still held 0.3 0.5 December 31 $ 23.6 $ 23.3 |
Schedule of Expected Benefit Payments | The following retirement benefit payments are expected to be paid: (In millions) Pension Benefits Postretirement 2019 $ 39.4 $ 0.1 2020 41.0 0.1 2021 42.1 0.1 2022 43.4 0.1 2023 44.4 0.1 Years 2024-2028 234.7 0.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Components of Loss Income Before Income Taxes and Noncontrolling Interests | The components of income from continuing operations before income taxes and noncontrolling interests were as follows: (In millions) 2018 2017 2016 Domestic operations $ 456.7 $ 554.7 $ 513.8 Foreign operations 80.3 80.1 68.3 Income before income taxes and noncontrolling interests $ 537.0 $ 634.8 $ 582.1 |
Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations | A reconciliation of income taxes at the 35% federal statutory income tax rate for 2016 and 2017 and 21% for 2018 to the income tax provision reported was as follows: (In millions) 2018 2017 2016 Income tax expense computed at federal statutory income tax rate $ 112.8 $ 222.2 $ 203.7 Other income taxes, net of federal tax benefit 13.7 13.4 12.6 Foreign taxes at a different rate than U.S. federal statutory income tax rate 3.5 (8.3 ) (7.6 ) Tax benefit on income attributable to domestic production activities 0.0 (10.9 ) (13.0 ) Net adjustments for uncertain tax positions 4.1 11.6 13.2 Share-based compensation (ASU 2016-09) (2.1 ) (23.9 ) (27.8 ) Tax Act impact 5.5 (25.7 ) — Deferred tax impact of state tax rate changes 3.5 (2.0 ) (1.1 ) Valuation allowance increase (decrease) 3.0 (5.2 ) (2.1 ) Miscellaneous other, net 3.0 (11.7 ) (8.2 ) Income tax expense as reported $ 147.0 $ 159.5 $ 169.7 Effective income tax rate 27.4 % 25.1 % 29.2 % |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) was as follows: (In millions) 2018 2017 2016 Unrecognized tax benefits — beginning of year $ 87.5 $ 58.2 $ 38.2 Gross additions — current year tax positions 9.1 31.0 10.7 Gross additions — prior year tax positions 9.3 10.9 10.4 Gross additions (reductions) — purchase accounting adjustments 1.0 4.0 9.7 Gross reductions — prior year tax positions (14.5 ) (9.4 ) (9.8 ) Gross reductions — settlements with taxing authorities (8.9 ) (7.2 ) (1.0 ) Unrecognized tax benefits — end of year $ 83.5 $ 87.5 $ 58.2 |
Income Taxes | Income taxes in 2018, 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Current Federal $ 93.5 $ 133.1 $ 150.4 Foreign 26.4 22.4 22.3 State and other 24.1 22.8 22.9 Deferred Federal, state and other 4.8 (27.2 ) (23.9 ) Foreign (1.8 ) 8.4 (2.0 ) Total income tax expense $ 147.0 $ 159.5 $ 169.7 |
Components of Net Deferred Tax Assets Liabilities | The components of net deferred tax assets (liabilities) as of December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Deferred tax assets: Compensation and benefits $ 31.5 $ 22.1 Defined benefit plans 39.3 43.7 Capitalized inventories 16.1 11.1 Accounts receivable 5.4 7.8 Other accrued expenses 55.2 45.6 Net operating loss and other tax carryforwards 21.2 25.6 Valuation allowance (13.3 ) (11.0 ) Miscellaneous 2.5 3.7 Total deferred tax assets 157.9 148.6 Deferred tax liabilities: LIFO inventories 0.0 (4.2 ) Fixed assets (60.2 ) (44.5 ) Intangible assets (224.6 ) (232.0 ) Investment in partnership (3.8 ) (9.2 ) Miscellaneous (20.0 ) (16.1 ) Total deferred tax liabilities (308.6 ) (306.0 ) Net deferred tax liability $ (150.7 ) $ (157.4 ) In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2018 and 2017 as follows: (In millions) 2018 2017 Other assets 11.9 9.4 Deferred income taxes (162.6 ) (166.8 ) Net deferred tax liability $ (150.7 ) $ (157.4 ) |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pre-tax Restructuring and Other Charges | Pre-tax Year Ended December 31, 2018 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 16.8 $ 9.1 $ 0.3 $ 26.2 Plumbing 2.6 0.6 0.1 3.3 Doors & Security 4.7 2.4 (1.2 ) 5.9 Total $ 24.1 $ 12.1 $ (0.8 ) $ 35.4 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off (b) Selling, general and administrative expenses Restructuring and other charges in 2018 are largely related to our initiatives to consolidate and rationalize our manufacturing footprint and discontinue certain product lines in our Cabinets segment and severance costs within all our segments. Pre-tax Year Ended December 31, 2017 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 1.4 $ 1.6 $ 2.2 $ 5.2 Plumbing 2.8 — — 2.8 Doors & Security 4.1 5.6 0.8 10.5 Total $ 8.3 $ 7.2 $ 3.0 $ 18.5 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses Restructuring and other charges in 2017, primarily related to losses on disposal of inventory associated with exiting a product line in our Doors & Security segment and exiting a customer relationship in our Cabinets segment, as well as severance costs within our Doors & Security, Plumbing and Cabinets segments. Pre-tax Year Ended December 31, 2016 Other Charges (a) (In millions) Restructuring Cost of SG&A (b) Total Cabinets $ 1.8 $ — $ — $ 1.8 Plumbing 1.6 0.3 0.2 2.1 Doors & Security 10.5 4.2 0.7 15.4 Total $ 13.9 $ 4.5 $ 0.9 $ 19.3 (a) “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. (b) Selling, general and administrative expenses |
Reconciliation of Restructuring Liability | Reconciliation of Restructuring Liability (In millions) Balance at 12/31/17 2018 Provision Cash Expenditures (a) Non-Cash Write-offs (b) Balance at 12/31/18 Workforce reduction costs $ 5.0 $ 21.4 $ (16.3 ) $ (0.2 ) $ 9.9 Other 0.8 2.7 (2.4 ) (0.5 ) 0.6 $ 5.8 $ 24.1 $ (18.7 ) $ (0.7 ) $ 10.5 (a) Cash expenditures primarily related to severance charges. (b) Non-cash (In millions) Balance at 12/31/16 2017 Provision Cash Expenditures (a) Non-Cash Write-offs (b) Balance at 12/31/17 Workforce reduction costs $ 2.4 $ 6.7 $ (3.9 ) $ (0.2 ) $ 5.0 Other 0.6 1.6 (1.3 ) (0.1 ) 0.8 $ 3.0 $ 8.3 $ (5.2 ) $ (0.3 ) $ 5.8 (a) Cash expenditures primarily related to severance charges. (b) Non-cash |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Future Minimum Rental Payments under Non-Cancelable Operating Leases | Future minimum rental payments under non-cancelable (In millions) 2019 $ 37.8 2020 29.6 2021 23.4 2022 18.9 2023 13.8 Remainder 58.8 Total minimum rental payments $ 182.3 |
Activity Related to Product Warranty Liability | The following table summarizes activity related to our product warranty liability for the years ended December 31, 2018, 2017 and 2016. (In millions) 2018 2017 2016 Reserve balance at the beginning of the year $ 17.2 $ 16.2 $ 16.0 Provision for warranties issued 25.1 25.1 25.8 Settlements made (in cash or in kind) (25.7 ) (24.3 ) (25.5 ) Acquisition 8.9 — 0.3 Foreign currency (0.6 ) 0.2 (0.4 ) Reserve balance at end of year $ 24.9 $ 17.2 $ 16.2 |
Information on Business Segme_2
Information on Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Sales and Operating Income by Segment | The Company’s subsidiaries operate principally in the United States, Canada, Mexico, China and Western Europe. (In millions) 2018 2017 2016 Net sales: Cabinets $ 2,418.6 $ 2,467.1 $ 2,397.8 Plumbing 1,883.3 1,720.8 1,534.4 Doors & Security 1,183.2 1,095.4 1,052.7 Net sales $ 5,485.1 $ 5,283.3 $ 4,984.9 (In millions) 2018 2017 2016 Operating income: Cabinets $ 143.5 $ 267.2 $ 257.8 Plumbing (b) 375.3 358.5 314.9 Doors & Security (b) 155.6 146.9 126.4 Less: Corporate expenses (a) (b) (79.2 ) (90.1 ) (80.5 ) Operating income $ 595.2 $ 682.5 $ 618.6 (a) General and administrative expense $ (79.2 ) $ (85.0 ) $ (80.5 ) Long-lived asset impairment — (5.1 ) — Total Corporate expenses $ (79.2 ) $ (90.1 ) $ (80.5 ) (b) We revised our previously reported results in 2017 and 2016 for ASU 2017-07, (In millions) 2018 2017 2016 Total assets: Cabinets $ 2,318.7 $ 2,416.3 $ 2,349.4 Plumbing 1,943.1 1,854.1 1,626.8 Doors & Security 1,526.0 1,032.2 995.1 Corporate 176.8 208.8 157.2 Total assets $ 5,964.6 $ 5,511.4 $ 5,128.5 Depreciation expense: Cabinets $ 50.9 $ 42.8 $ 40.1 Plumbing 29.1 26.9 24.6 Doors & Security 30.2 25.9 26.2 Corporate 3.3 3.0 3.7 Depreciation expense $ 113.5 $ 98.6 $ 94.6 Amortization of intangible assets: Cabinets $ 19.6 $ 19.7 $ 18.4 Plumbing 10.4 7.7 3.6 Doors & Security 6.1 4.3 6.1 Amortization of intangible assets $ 36.1 $ 31.7 $ 28.1 Capital expenditures: Cabinets $ 73.8 $ 63.4 $ 61.7 Plumbing 41.4 43.5 48.3 Doors & Security 34.3 40.1 38.8 Corporate 0.6 18.0 0.5 Capital expenditures, gross 150.1 165.0 149.3 Less: proceeds from disposition of assets (6.1 ) (0.4 ) (3.9 ) Capital expenditures, net $ 144.0 $ 164.6 $ 145.4 Net sales by geographic region (a) United States $ 4,606.6 $ 4,492.2 $ 4,258.5 Canada 433.1 427.6 406.4 China 260.6 202.3 175.0 Other international 184.8 161.2 145.0 Net sales $ 5,485.1 $ 5,283.3 $ 4,984.9 Property, plant and equipment, net: United States $ 628.9 $ 562.3 $ 499.8 Mexico 103.4 89.0 90.8 Canada 46.0 50.5 45.5 China 22.5 24.8 22.7 Other international 12.6 13.4 3.7 Property, plant and equipment, net $ 813.4 $ 740.0 $ 662.5 (a) Based on country of destination |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Quarterly Financial Data | (In millions, except per share amounts) 2018 1 st 2 nd 3 rd 4 th Full Year Net sales $ 1,254.6 $ 1,429.0 $ 1,380.8 $ 1,420.7 $ 5,485.1 Gross profit 439.6 524.1 493.9 501.8 1,959.4 Operating income 119.4 188.6 147.1 140.1 595.2 Income from continuing operations, net of tax 75.1 129.7 99.9 85.3 390.0 Income (loss) from discontinued operations, net of tax (0.2 ) — — — (0.2 ) Net income 74.9 129.7 99.9 85.3 389.8 Net income attributable to Fortune Brands 75.0 129.6 99.8 85.2 389.6 Basic earnings (loss) per common share Continuing operations 0.50 0.89 0.70 0.60 2.69 Discontinued operations — — — — — Net income attributable to Fortune Brands 0.50 0.89 0.70 0.60 2.69 Diluted earnings (loss) per common share Continuing operations 0.49 0.88 0.69 0.60 2.66 Discontinued operations — — — — — Net income attributable to Fortune Brands 0.49 0.88 0.69 0.60 2.66 2017 1 st 2 nd 3 rd 4 th Full Year Net sales $ 1,186.8 $ 1,365.4 $ 1,348.6 $ 1,382.5 $ 5,283.3 Gross profit (a) 414.1 513.3 505.3 492.3 1,925.0 Operating income (a) 111.0 209.2 199.5 162.8 682.5 Income from continuing operations, net of tax 77.4 140.3 129.6 128.0 475.3 Income (loss) from discontinued operations, net of tax — (2.6 ) — — (2.6 ) Net income 77.4 137.7 129.6 128.0 472.7 Net income attributable to Fortune Brands 77.4 137.7 129.5 128.0 472.6 Basic earnings (loss) per common share Continuing operations 0.50 0.91 0.84 0.84 3.10 Discontinued operations — (0.02 ) — — (0.02 ) Net income attributable to Fortune Brands 0.50 0.89 0.84 0.84 3.08 Diluted earnings (loss) per common share Continuing operations 0.50 0.90 0.83 0.83 3.05 Discontinued operations — (0.02 ) — — (0.02 ) Net income attributable to Fortune Brands 0.50 0.88 0.83 0.83 3.03 (a) Amounts revised to reflect adoption of ASU 2017-07 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Computations of Earnings (Loss) per Common Share | The computations of earnings (loss) per common share were as follows: (In millions, except per share data) 2018 2017 2016 Income from continuing operations, net of tax $ 390.0 $ 475.3 $ 412.4 Less: Noncontrolling interests 0.2 0.1 — Income from continuing operations for EPS 389.8 475.2 412.4 Income (loss) from discontinued operations (0.2 ) (2.6 ) 0.8 Net income attributable to Fortune Brands $ 389.6 $ 472.6 $ 413.2 Earnings (loss) per common share Basic Continuing operations $ 2.69 $ 3.10 $ 2.67 Discontinued operations — (0.02 ) 0.01 Net income attributable to Fortune Brands common stockholders $ 2.69 $ 3.08 $ 2.68 Diluted Continuing operations $ 2.66 $ 3.05 $ 2.61 Discontinued operations — (0.02 ) 0.01 Net income attributable to Fortune Brands common stockholders $ 2.66 $ 3.03 $ 2.62 Basic average shares outstanding 144.6 153.2 154.3 Stock-based awards 1.8 2.6 3.5 Diluted average shares outstanding 146.4 155.8 157.8 Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share 1.5 0.5 0.5 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Components of Other Expense , Net | The components of other income, net for the years ended December 31, 2018, 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Defined benefit plan (a) $ (6.5 ) $ (9.6 ) $ (14.2 ) Asset impairment charge $ — $ 7.0 $ — Foreign currency (gains)/losses $ (2.0 ) $ 0.9 $ 2.8 Ineffective portion of cash flow hedge $ (3.8 ) — — Other items, net $ (4.0 ) — (1.2 ) Total other income, net $ (16.3 ) $ (1.7 ) $ (12.6 ) (a) Amounts revised to reflect adoption of ASU 2017-07 |
Background and Basis of Prese_2
Background and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Basis of Presentation [Line Items] | ||
Payments made to third parties | $ 38 | |
Fiberon [Member] | ||
Basis of Presentation [Line Items] | ||
Business acquisition, membership interest acquired | 100.00% | |
Business acquisition, total purchase price | $ 470 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Highly liquid investments included in cash and cash equivalents, maturity period | 3 months | |||||||||||
Allowances for doubtful accounts | $ 3,700,000 | $ 3,300,000 | $ 3,700,000 | $ 3,300,000 | ||||||||
Inventories | 678,900,000 | [1] | 580,800,000 | 678,900,000 | [1] | 580,800,000 | ||||||
Impairment of long-lived asset | $ 3,000,000 | |||||||||||
Unrecognized tax benefits pertaining to uncertain tax positions | 83,500,000 | 87,500,000 | 83,500,000 | 87,500,000 | $ 58,200,000 | $ 38,200,000 | ||||||
Income taxes, estimated net benefit | 25,700,000 | |||||||||||
Tax reform deferred tax impact of tax rate changes | 5,500,000 | |||||||||||
Advertising costs | 243,600,000 | 233,200,000 | 199,100,000 | |||||||||
Advertising costs, reduction to net sales | 72,400,000 | 65,600,000 | 52,500,000 | |||||||||
Research and development expenses | 50,300,000 | 50,700,000 | 53,100,000 | |||||||||
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings | 3,300,000 | 3,300,000 | ||||||||||
Effect of health care cost trend rate | 1.00% | |||||||||||
Investments | 28,700,000 | 0 | 28,700,000 | 0 | ||||||||
ImpairmentOfInvestments | $ 0 | 7,000,000 | ||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 which removes the requirement to disclose: 1) amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, 2) policy for timing of transfers between levels, and 3) valuation processes for Level 3 investments. In addition, this guidance modifies and adds other disclosure requirements, which primarily relate to valuation of Level 3 assets and liabilities. The guidance is effective for the Company’s fiscal year beginning January 1, 2020, with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14 which removes several disclosure requirements, including the amount in AOCI expected to be recognized in income over the next fiscal year and the effects of a 1% change in assumed health care cost trend rates and adds new disclosure requirements to explain reasons for significant gains and losses related to changes in the benefit obligation for the period, and to disclose weighted-average interest crediting rates for plans with promised interest crediting rates. The guidance is effective for the Company’s fiscal year beginning January 1, 2020, with early adoption permitted. We do not expect the adoption of this guidance to have a material effect on our financial statements. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs to obtain software, including configuration and integration with legacy IT systems, coding and testing, including parallel process phases are eligible for capitalization under the new standard. In addition, activities that would be expensed include costs related to vendor demonstrations, determining performance and technology requirements and training activities. The standard is effective for the Company’s fiscal year beginning January 1, 2020, with early adoption permitted. We are assessing the impact the adoption of this standard will have on our financial statements. | Codification Improvements In July 2018, the FASB issued ASU 2018-09 which includes technical corrections, clarifications, and other minor improvements to various areas including business combinations, fair value measurements and hedging. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this standard were effective immediately, while others will be effective for the Company’s fiscal year beginning January 1, 2019. Our adoption of the immediately effective pieces of this standard did not have a material effect on our financial statements, nor do we expect the adoption of the other aspects of this standard to be material. | Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued ASU 2018-07 which simplifies the accounting for share-based arrangements with nonemployees. The new guidance generally aligns the accounting for share-based awards to nonemployees with the guidance for share-based awards to employees. The guidance is effective for the Company’s fiscal year beginning January 1, 2019. We do not expect the adoption of this guidance to have a material effect on our financial statements. | |||||||||
Change in Accounting Estimate, Description | During the fourth quarter of 2018, we determined that it was preferable to change our accounting policy from last-in, first-out (“LIFO”) to FIFO for product groups in which metals comprise a significant portion of inventory cost. | |||||||||||
Reduction in deferred tax liabilities | 150,700,000 | 157,400,000 | $ 150,700,000 | 157,400,000 | ||||||||
Repatriation tax liability | 28,500,000 | |||||||||||
Increase In Provision For Tax | 8,200,000 | |||||||||||
Adjustments to deferred tax liabilty | 5,500,000 | |||||||||||
Federal Income Tax Rate [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Reduction in deferred tax liabilities | 62,400,000 | 62,400,000 | ||||||||||
Change in Accounting Method Accounted for as Change in Estimate [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Adjustment to cost of inventories to FIFO pre-tax benefit | 7,300,000 | |||||||||||
Adjustment To Cost Of Inventories to FIFO Post Tax Benefit | 5,500,000 | |||||||||||
Cash flow hedge [Member] | Foreign exchange contracts [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Gain (loss) reclassified from Accumulated OCI into earnings | 2,200,000 | 400,000 | (3,500,000) | |||||||||
Estimated amount of net foreign currency derivative gains (loss) in other comprehensive income reclassified to earnings | 3,300,000 | 3,300,000 | ||||||||||
Selling, general and administrative Expenses [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Impairment of long-lived asset | 5,100,000 | |||||||||||
Customer program costs | 66,500,000 | 62,400,000 | 44,100,000 | |||||||||
Shipping and handling costs | 215,900,000 | 204,700,000 | 197,000,000 | |||||||||
Advertising costs | 171,200,000 | 167,600,000 | $ 146,600,000 | |||||||||
Minimum [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Reasonably possible decrease in unrecognized tax benefits | 1,400,000 | 1,400,000 | ||||||||||
Operating Lease, Right-of-Use Asset | 170,000,000 | 170,000,000 | ||||||||||
Maximum [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Reasonably possible decrease in unrecognized tax benefits | 3,500,000 | 3,500,000 | ||||||||||
Operating Lease, Right-of-Use Asset | $ 200,000,000 | $ 200,000,000 | ||||||||||
Income Approach [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Goodwill recoverability weighted percentage | 80.00% | 80.00% | ||||||||||
Market Approach [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
Goodwill recoverability weighted percentage | 20.00% | 20.00% | ||||||||||
Metals inventories [Member] | ||||||||||||
Significant Of Accounting Policies [Line Items] | ||||||||||||
LIFO inventories | $ 0 | 245,600,000 | $ 0 | 245,600,000 | ||||||||
Inventories | $ 0 | $ 259,300,000 | $ 0 | $ 259,300,000 | ||||||||
[1] | 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and Leasehold Improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Buildings and Leasehold Improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 40 years |
Machinery and Equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Machinery and Equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 15 years |
Software | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Software | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 7 years |
Balance Sheet Information - Sup
Balance Sheet Information - Supplemental Information on Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | [1] | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories: | ||||
Raw materials and supplies | $ 227.4 | $ 224.9 | ||
Work in process | 66.4 | 58.3 | ||
Finished products | 385.1 | 297.6 | ||
Total inventories | 678.9 | 580.8 | ||
Property, plant and equipment: | ||||
Land and improvements | 66.8 | 58.7 | ||
Buildings and improvements to leaseholds | 500.1 | 464.1 | ||
Machinery and equipment | 1,249 | 1,167.5 | ||
Construction in progress | 95.8 | 90.1 | ||
Property, plant and equipment, gross | 1,911.7 | 1,780.4 | ||
Less: accumulated depreciation | 1,098.3 | 1,040.4 | ||
Property, plant and equipment, net of accumulated depreciation | 813.4 | 740 | $ 662.5 | |
Other current liabilities: | ||||
Accrued salaries, wages and other compensation | 85.9 | 105.9 | ||
Accrued customer programs | 167.8 | 142.8 | ||
Accrued taxes | 57.7 | 61.4 | ||
Dividends payable | 30.9 | 30.4 | ||
Other accrued expenses | 165.8 | 137.5 | ||
Total other current liabilities | $ 508.1 | $ 478 | ||
[1] | 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Loss on sale of product line | $ (2.4) | $ (2.4) | |||
Asset impairment charges | $ 3.2 | $ 3.2 | $ 62.6 | $ 3.2 | |
Fiberon [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition consideration price paid | $ 470 | ||||
Business acquisition, membership interest acquired | 100.00% | ||||
Victoria Plus Albert and Shaws [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition consideration price paid | 146 | ||||
Business acquisition additional purchase price consideration | $ 19.9 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Preliminary Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 2,080.3 | $ 1,912 | $ 1,833.8 |
Fiberon [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 19.2 | |||
Inventories | 49.4 | |||
Property, plant and equipment | 49 | |||
Goodwill | 173.4 | |||
Identifiable intangible assets | 195 | |||
Other assets | 4.8 | |||
Total assets | 490.8 | |||
Accounts payable | 16.5 | |||
Other liabilities and accruals | 14.5 | |||
Net assets acquired | $ 459.8 | |||
[1] | Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)asset-group | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Goodwill | [1] | $ 2,080.3 | $ 2,080.3 | $ 1,912 | $ 1,833.8 | |||
Other intangible assets, net of accumulated amortization | 1,246.8 | 1,246.8 | 1,162.4 | |||||
Expected intangible amortization expense in 2019 | 43 | 43 | ||||||
Expected intangible amortization expense in 2020 | 42 | 42 | ||||||
Expected intangible amortization expense in 2021 | 42 | 42 | ||||||
Expected intangible amortization expense in 2022 | 40 | 40 | ||||||
Expected intangible amortization expense in 2023 | 39 | 39 | ||||||
Asset Impairment Charges | $ 3.2 | $ 3.2 | 62.6 | 3.2 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 673.9 | 673.9 | 709.9 | |||||
Trade Names [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 152 | 152 | ||||||
Indefinite-lived Intangible Assets [Member] | Trade Names [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Asset Impairment Charges | 35.5 | $ 27.1 | 62.6 | |||||
Fiberon & Victoria plus Albert [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Goodwill increase (decrease) due to acquisition-related | 168.3 | |||||||
Cabinets [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Goodwill | [1] | 924 | 924 | 926.3 | 924.3 | |||
Impairment of intangible assets, trade names | $ 62.6 | |||||||
Number of tradenames, with the fair value exceeded their carrying value | asset-group | 2 | |||||||
Doors & Security [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Goodwill | [1] | $ 412.6 | $ 412.6 | $ 240.5 | $ 239.3 | |||
Increase in gross identifiable intangible assets | $ 117.9 | |||||||
Tradenames and Customer Relationship [Member] | Maximum [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Amortizable identifiable intangible assets, estimated useful life | 30 years | |||||||
Tradenames and Customer Relationship [Member] | Minimum [Member] | ||||||||
Goodwill and Identifiable Intangible Assets [Line Items] | ||||||||
Amortizable identifiable intangible assets, estimated useful life | 2 years | |||||||
[1] | Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill [Line Items] | |||
Beginning Balance | [1] | $ 1,912 | $ 1,833.8 |
Translation adjustments | (9.6) | 6.5 | |
Acquisition-related adjustments | 177.9 | 71.7 | |
Ending Balance | [1] | 2,080.3 | 1,912 |
Cabinets [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 926.3 | 924.3 |
Translation adjustments | (2.3) | 2 | |
Ending Balance | [1] | 924 | 926.3 |
Plumbing [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 745.2 | 670.2 |
Translation adjustments | (5.9) | 3.3 | |
Acquisition-related adjustments | 4.4 | 71.7 | |
Ending Balance | [1] | 743.7 | 745.2 |
Doors & Security [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | [1] | 240.5 | 239.3 |
Translation adjustments | (1.4) | 1.2 | |
Acquisition-related adjustments | 173.5 | ||
Ending Balance | [1] | $ 412.6 | $ 240.5 |
[1] | Net of accumulated impairment losses of $399.5 million in the Doors & Security segment. |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets - Change in Net Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Doors & Security [Member] | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 399.5 |
Goodwill and Identifiable Int_6
Goodwill and Identifiable Intangible Assets - Gross Carrying Value and Accumulated Amortization by Class of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Total identifiable intangibles | $ 1,567.5 | $ 1,449.6 |
Gross Carrying Amounts, Finite Lived | 893.6 | 739.7 |
Accumulated Amortization, Finite Lived | (320.7) | (287.2) |
Net Book Value, Finite Lived | 572.9 | 452.5 |
Gross Carrying Amounts, Indefinite-lived tradenames | 673.9 | 709.9 |
Net Book Value, Indefinite-lived tradenames | 673.9 | 709.9 |
Accumulated Amortization, Total identifiable intangibles | (320.7) | (287.2) |
Net Book Value, Total identifiable intangibles | 1,246.8 | 1,162.4 |
Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 19.8 | 15.7 |
Accumulated Amortization, Finite Lived | (11.9) | (9.9) |
Net Book Value, Finite Lived | 7.9 | 5.8 |
Customer and contractual relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 800.3 | 663.8 |
Accumulated Amortization, Finite Lived | (260.2) | (232) |
Net Book Value, Finite Lived | 540.1 | 431.8 |
Patents/proprietary technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amounts, Finite Lived | 73.5 | 60.2 |
Accumulated Amortization, Finite Lived | (48.6) | (45.3) |
Net Book Value, Finite Lived | $ 24.9 | $ 14.9 |
Asset Impairment Charges - Addi
Asset Impairment Charges - Additional information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Impairment Charges [Line Items] | ||||
Asset impairment charge | $ 3.2 | $ 3.2 | $ 62.6 | $ 3.2 |
Definite-lived intangible assets | 3 | |||
Fixed Assets | $ 0.2 |
External Debt and Financing A_3
External Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Aug. 31, 2018 | Jun. 30, 2015 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||||||
Term loan maturity period | 2019-03 | ||||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital | $ 23,500,000 | $ 23,500,000 | |||||
Uncommitted bank lines of credit, which provide for unsecured borrowings for working capital amount outstanding | $ 0 | 0 | |||||
LIBOR [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 0.90% | ||||||
LIBOR [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate over LIBOR | 1.50% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, outstanding borrowings | $ 320,000,000 | 615,000,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | 1,250,000,000 | |||||
Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, price | $ 525,000,000 | $ 350,000,000 | |||||
Debt instrument, description | In March 2018, the Company entered into a $350 million term loan for general corporate purposes that matures in March 2019. In August 2018, the Company amended its existing $350 million term loan to increase the borrowings under the term loan from $350 million to $525 million. All other terms and conditions on the amended term loan remain the same as the previous $350 million term loan. | ||||||
Debt Instrument, Description of Variable Rate Basis | Interest rates under the term loan are variable based on LIBOR at the time of the borrowing and the Company’s long-term credit rating and can range from LIBOR + 0.625% to LIBOR + 1.25%. | ||||||
2018 Senior Notes [Member] | Notes due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, price | $ 600,000,000 | ||||||
Senior unsecured notes, maturity year | 2,023 | ||||||
Senior unsecured notes, coupon rate | 4.00% | ||||||
Senior notes, outstanding amount | 595,000,000 | ||||||
2015 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, price | $ 900,000,000 | ||||||
Senior notes, outstanding amount | 894,000,000 | $ 892,600,000 | |||||
2015 Senior Notes [Member] | Notes Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, price | $ 400,000,000 | ||||||
Senior unsecured notes, maturity year | 2,020 | ||||||
Senior unsecured notes, coupon rate | 3.00% | ||||||
Senior unsecured notes, maturity period | 5 years | ||||||
2015 Senior Notes [Member] | Notes due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured notes, price | $ 500,000,000 | ||||||
Senior unsecured notes, maturity year | 2,025 | ||||||
Senior unsecured notes, coupon rate | 4.00% | ||||||
Senior unsecured notes, maturity period | 10 years | ||||||
Amended and Restated Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000,000 | ||||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt payments in 2019 | 0 | ||||||
Long-term debt payments in 2020 | 400,000,000 | ||||||
Long-term debt payments in 2021 | 0 | ||||||
Long-term debt payments in 2022 | 600,000,000 | ||||||
Long-term debt payments in 2023 | $ 600,000,000 |
External Debt and Financing A_4
External Debt and Financing Arrangements - Components of External Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,334 | $ 1,507.6 |
Less: current portion | 525 | 0 |
Total long-term debt | 1,809 | 1,507.6 |
Senior Unsecured Notes [Member] | Notes due June 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 399 | 398.3 |
Senior Unsecured Notes [Member] | Notes due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 495 | 494.3 |
Senior Unsecured Notes [Member] | Notes due September 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 595 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 525 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 320 | $ 615 |
External Debt and Financing A_5
External Debt and Financing Arrangements - Components of External Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 525 | $ 525 |
Debt instrument, maturity date | 2019-03 | 2019-03 |
Notes due June 2020 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 400 | $ 400 |
Debt instrument, maturity date | 2020-06 | 2020-06 |
Notes due June 2025 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 500 | $ 500 |
Debt instrument, maturity date | 2025-06 | 2025-06 |
Notes due September 2023 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 600 | $ 600 |
Debt instrument, maturity date | 2023-09 | 2023-09 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250 | $ 1,250 |
Revolving credit facility, expiration date | 2021-06 | 2021-06 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Net settlement payable | $ 3,400,000 | ||
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings within 12 months | 3,300,000 | ||
Derivative instrument gain (loss), effective portion | $ 10,100,000 | $ (1,800,000) | $ (6,700,000) |
Minimum [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts period | 12 months | ||
Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign exchange contracts period | 15 months | ||
Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount of foreign currency derivative hedges | $ 345,300,000 | ||
Derivative instrument gain (loss), ineffective portion | 3,800,000 | ||
Cash flow hedge [Member] | |||
Derivative [Line Items] | |||
Derivative instrument gain (loss), effective portion | 10,100,000 | $ (1,800,000) | |
Cash flow hedge [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Estimated amount of net foreign currency derivative losses in other comprehensive income reclassified to earnings within 12 months | $ 3,300,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 6 | $ 1 |
Derivative liabilities, fair value | 1.9 | 6.4 |
Net investment hedges [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0.7 | |
Net investment hedges [Member] | Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 0.8 | |
Foreign exchange contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 5.3 | 0.8 |
Foreign exchange contracts [Member] | Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 1.9 | 5.6 |
Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 0.2 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Financial Instruments on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 5.7 | $ (1.1) | $ (1.5) |
Cash flow hedge [Member] | Cost of products sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 2 | 0.9 | (3.5) |
Fair value hedge [Member] | Other (income) expense, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 3.7 | $ (2) | $ 2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2018USD ($) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Assets or liabilities measured at fair value on recurring basis | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | Term Loan Facility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 525 | |
Carrying Value | Senior Unsecured Notes [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,489 | $ 892.6 |
Carrying Value | Revolving Credit Facility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 320 | 615 |
Fair Value | Term Loan Facility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 525 | |
Fair Value | Senior Unsecured Notes [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,490.4 | 926.3 |
Fair Value | Revolving Credit Facility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 320 | $ 615 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset financial instruments (level 2) | $ 6 | $ 1 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 15.3 | 8.5 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset financial instruments (level 2) | 6 | 1 |
Deferred compensation program assets (level 2) | 9.3 | 7.5 |
Derivative liability financial instruments (level 2) | $ 1.9 | $ 6.4 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Percentage of increase in quarterly cash dividend | 10.00% | ||
Dividend declared, per share | $ 0.22 | ||
Preferred stock, shares authorized | 60,000,000 | ||
Preferred stock, par value | $ 0.01 | ||
Common stock repurchases | 12,000,144 | 3,393,462 | |
Treasury stock purchases | $ 694.6 | $ 214.8 | $ 424.5 |
Stock repurchase program, remaining authorized repurchase amount | $ 413.7 |
Capital Stock - Common Stock an
Capital Stock - Common Stock and Treasury Stock Activity (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common shares | ||
Balance at the beginning of the year | 151,906,797 | 153,412,050 |
Stock plan shares issued | 822,878 | 2,068,746 |
Shares surrendered by optionees | (230,550) | (180,537) |
Common stock repurchases | (12,000,144) | (3,393,462) |
Balance at the end of the year | 140,498,981 | 151,906,797 |
Treasury shares | ||
Balance at the beginning of the year | 27,879,929 | 24,305,930 |
Stock plan shares issued | ||
Shares surrendered by optionees | 230,550 | 180,537 |
Common stock repurchases | 12,000,144 | 3,393,462 |
Balance at the end of the year | 40,110,623 | 27,879,929 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of products sold | $ 3,525.7 | $ 3,358.3 | $ 3,188.8 | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 537 | 634.8 | 582.1 | |||||||||
Tax (expense) benefit | 147 | 159.5 | 169.7 | |||||||||
Income (Loss) from Continuing Operations Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 85.3 | $ 99.9 | $ 129.7 | $ 75.1 | $ 128 | $ 129.6 | $ 140.3 | $ 77.4 | 390 | 475.3 | 412.4 | |
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (1.3) | 4.4 | ||||||||||
Derivative Hedging Losses (Gains) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | 1.7 | 0.8 | (3.5) | |||||||||
Derivative Hedging Losses (Gains) [Member] | Interest rate contracts [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of products sold | 0.1 | |||||||||||
Prior service cost [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 5.1 | ||||||||||
Actuarial (losses) gains [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (3.8) | 0.5 | |||||||||
Defined benefit plan items [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (3.8) | 5.6 | ||||||||||
Reclassification from AOCI, Current Period, Tax | 0.8 | (2) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (3) | 3.6 | $ 7.3 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 2.1 | 0.9 | ||||||||||
Tax (expense) benefit | (0.4) | (0.1) | ||||||||||
Income (Loss) from Continuing Operations Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1.7 | 0.8 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | Foreign exchange contracts [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of products sold | 2.2 | 0.4 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | Interest rate contracts [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other income, net | 0.1 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Derivative Hedging Losses (Gains) [Member] | Commodity contracts [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of products sold | $ (0.2) | $ 0.5 | ||||||||||
[1] | These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost. Refer to Note 15, “Defined Benefit Plans,” for additional information. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - After-Tax Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 2,601.1 | $ 2,363 | $ 2,453.8 |
Amounts reclassified from accumulated other comprehensive (loss) income into earnings | 1.3 | (4.4) | |
Other comprehensive (loss) income, net of tax | (27.8) | 32.7 | (19.4) |
Ending Balance | 2,180 | 2,601.1 | 2,363 |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 5.8 | (28) | (13.3) |
Amounts classified into accumulated other comprehensive (loss) income | (31.1) | 33.8 | (14.7) |
Other comprehensive (loss) income, net of tax | (31.1) | 33.8 | (14.7) |
Ending Balance | (25.3) | 5.8 | (28) |
Derivative Hedging Losses (Gains) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (2.4) | (0.6) | 2.1 |
Amounts classified into accumulated other comprehensive (loss) income | 8.3 | (1) | (6.2) |
Amounts reclassified from accumulated other comprehensive (loss) income into earnings | (1.7) | (0.8) | 3.5 |
Other comprehensive (loss) income, net of tax | 6.6 | (1.8) | (2.7) |
Ending Balance | 4.2 | (2.4) | (0.6) |
Defined benefit plan items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (42.6) | (43.3) | (41.3) |
Amounts classified into accumulated other comprehensive (loss) income | (6.3) | 4.3 | 5.3 |
Amounts reclassified from accumulated other comprehensive (loss) income into earnings | 3 | (3.6) | (7.3) |
Other comprehensive (loss) income, net of tax | (3.3) | 0.7 | (2) |
Ending Balance | (45.9) | (42.6) | (43.3) |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (39.2) | (71.9) | (52.5) |
Amounts classified into accumulated other comprehensive (loss) income | (29.1) | 37.1 | (15.6) |
Amounts reclassified from accumulated other comprehensive (loss) income into earnings | 1.3 | (4.4) | (3.8) |
Other comprehensive (loss) income, net of tax | (27.8) | 32.7 | (19.4) |
Ending Balance | $ (67) | $ (39.2) | $ (71.9) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive Plan, common stock available for issuance | 4,600,000 | ||
Unrecognized compensation cost, weighted-average recognition period | 1 year 8 months 12 days | ||
Incentive Plan, options vesting period | 3 years | ||
Incentive Plan, options maturity period | 10 years | ||
Incentive Plan, weighted-average grant date fair value of stock options granted | $ 14.14 | $ 13.49 | $ 12.70 |
Unrecognized compensation cost related to unvested option | $ 5.1 | ||
Fair value of options vested | 6.7 | $ 6.8 | $ 6 |
Intrinsic value of stock options exercised | $ 8.7 | 70.6 | 88.1 |
Performance Condition Achievement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance share awards vested | (218,912) | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs classified as liability | $ 0.9 | ||
Unrecognized pre-tax compensation cost | 17.1 | ||
Fair value of performance share awards vested | $ 22.2 | $ 20.3 | $ 16.4 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, weighted-average recognition period | 1 year 7 months 6 days | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized pre-tax compensation cost | $ 2.6 | ||
Unrecognized compensation cost, weighted-average recognition period | 1 year 6 months | ||
Fair value of performance share awards vested | $ 13.8 | ||
Number of performance share awards vested | (136,822) | ||
Director Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards issued | 19,109 | 15,311 | 16,471 |
Common stock issued to outside directors | $ 54.93 | $ 63.43 | $ 57.37 |
Stock-Based Compensation - Pre-
Stock-Based Compensation - Pre-Tax Stock-Based Compensation Expense from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 37.2 | $ 43.6 | $ 32 |
Tax benefit | 6.2 | 15.2 | 11.4 |
Total after tax expense | 31 | 28.4 | 20.6 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 8.6 | 7.4 | 7.2 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 21.3 | 21.6 | 17.2 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 6.3 | 13.6 | 6.7 |
Director Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1 | $ 1 | $ 0.9 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Restricted Stock Units | |
Non-vested at December 31, 2017 | shares | 728,065 |
Granted | shares | 356,860 |
Vested | shares | (373,593) |
Forfeited | shares | (50,957) |
Non-vested at December 31, 2018 | shares | 660,375 |
Weighted-Average Grant-Date Fair Value | |
Non-vested at December 31, 2017 | $ / shares | $ 54.59 |
Granted | $ / shares | 61.07 |
Vested | $ / shares | 52.92 |
Forfeited | $ / shares | 59.87 |
Non-vested at December 31, 2018 | $ / shares | $ 58.63 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Current expected dividend yield | 1.30% | 1.40% | 1.40% |
Expected volatility | 24.00% | 26.00% | 30.00% |
Risk-free interest rate | 2.60% | 1.90% | 1.30% |
Expected term | 5 years | 5 years 6 months | 5 years 6 months |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Options | |
Outstanding at December 31, 2017 | shares | 3,682,958 |
Granted | shares | 628,614 |
Exercised | shares | (214,727) |
Expired/forfeited | shares | (73,023) |
Outstanding at December 31, 2018 | shares | 4,023,822 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2017 | $ / shares | $ 36.28 |
Granted | $ / shares | 63.44 |
Exercised | $ / shares | 22.86 |
Expired/forfeited | $ / shares | 59.07 |
Outstanding at December 31, 2018 | $ / shares | $ 40.83 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Outstanding and Exercisable (Detail) | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding | shares | 4,023,822 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | 5 years 6 months | [1] |
Options Outstanding, Weighted-Average Exercise Price | $ 40.83 | [1] |
Options Exercisable | shares | 2,932,022 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $ 33.67 | [2] |
Exercise Price Range One | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower limit | 9 | |
Range of Exercise Prices, upper limit | $ 12.99 | |
Options Outstanding | shares | 104,500 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | 2 years | [1] |
Options Outstanding, Weighted-Average Exercise Price | $ 12.30 | [1] |
Options Exercisable | shares | 104,500 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $ 12.30 | [2] |
Exercise Price Range Two | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower limit | 13 | |
Range of Exercise Prices, upper limit | $ 20 | |
Options Outstanding | shares | 1,096,463 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | 2 years 6 months | [1] |
Options Outstanding, Weighted-Average Exercise Price | $ 16.37 | [1] |
Options Exercisable | shares | 1,096,463 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $ 16.37 | [2] |
Exercise Price Range Three | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower limit | 20.01 | |
Range of Exercise Prices, upper limit | $ 65.41 | |
Options Outstanding | shares | 2,822,859 | [1] |
Options Outstanding, Weighted-Average Remaining Contractual Life | 6 years 9 months 18 days | [1] |
Options Outstanding, Weighted-Average Exercise Price | $ 51.38 | [1] |
Options Exercisable | shares | 1,731,059 | [2] |
Options Exercisable, Weighted-Average Exercise Price | $ 45.91 | [2] |
[1] | At December 31, 2018, the aggregate intrinsic value of options outstanding was $28.1 million. | |
[2] | At December 31, 2018, the weighted-average remaining contractual life of options exercisable was 4.4 years and the aggregate intrinsic value of options exercisable was $28.1 million. |
Stock-Based Compensation - Op_2
Stock-Based Compensation - Options Outstanding and Exercisable (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, aggregate intrinsic value | $ 28.1 |
Options exercisable, weighted-average remaining contractual life | 4 years 4 months 24 days |
Options exercisable, aggregate intrinsic value | $ 28.1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarizes Information of Performance Share Awards (Detail) - Performance Awards | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested at December 31, 2017 | shares | 428,328 |
Granted | shares | 140,071 |
Vested | shares | (136,822) |
Forfeited | shares | (22,486) |
Non-vested at December 31, 2018 | shares | 409,091 |
Non-vested at December 31, 2017 | $ / shares | $ 52.35 |
Granted | $ / shares | 63.44 |
Vested | $ / shares | 47.48 |
Forfeited | $ / shares | 57.41 |
Non-vested at December 31, 2018 | $ / shares | $ 57.50 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Payment term on product sales range, description | Payment terms on our product sales normally range from 30 to 90 days. |
Other current liabilities [Member] | |
Disaggregation of Revenue [Line Items] | |
Refund obligation | $ 14.8 |
Other Current Assets [Member] | |
Disaggregation of Revenue [Line Items] | |
Contract with customer, right to recover product, current | $ 2.3 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,485.1 | |
Wholesalers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,607.3 | [1] |
Home Center Retailers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,452.3 | [2] |
Other Retailers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 311.6 | [3] |
Builder Direct [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 235.4 | |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,606.6 | |
International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 878.5 | [4] |
[1] | Represents sales to customers whose business is oriented towards builders, professional trades and home remodelers, inclusive of sales through our customers’ respective internet website portals. | |
[2] | Represents sales to the three largest “Do-It-Yourself” retailers; The Home Depot, Inc., Lowes Companies, Inc. and Menards, Inc., inclusive of sales through their respective internet website portals. | |
[3] | Represents sales principally to our mass merchant and standalone independent e-commerce customers. | |
[4] | Represents sales in markets outside the United States, principally in Canada, China, Europe and Mexico. |
Defined Benefit Plans - Additio
Defined Benefit Plans - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($)age | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Recognition of actuarial gains (losses) | $ (3,800,000) | $ 500,000 | $ (1,900,000) | |
Accumulated other comprehensive income, net periodic benefit cost | 0 | |||
Defined Contribution Plan, cash contributions | 29,500,000 | 29,100,000 | 22,700,000 | |
Accounting Standards Update 2017-07 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Reclassifications from operating income to other income | 9,600,000 | $ 14,100,000 | ||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Investments measured using net asset value per share | $ 576,000,000 | 633,300,000 | ||
Real estate [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Assets redemption notice period | 45 days | |||
Investment Assets [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Assets redemption notice period | 95 days | |||
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Recognition of actuarial gains (losses) | $ 63,100,000 | (40,600,000) | ||
Defined benefit plans, increase (decrease) in liability | $ (5,000,000) | |||
Defined benefit plans, blended long-term rate of return on plan assets | 6.00% | 6.40% | 6.60% | |
Pension Benefits [Member] | Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, retirement benefits payment commencement age | age | 55 | |||
Pension Benefits [Member] | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plans, retirement benefits payment commencement age | age | 65 | |||
Postretirement Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Reduction in accrued retiree benefit plans | $ (10,700,000) | |||
Recognition of actuarial gains (losses) | $ (900,000) | $ 200,000 | $ 1,400,000 | |
Equity Securities | Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 0.00% | |||
Equity Securities | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 75.00% | |||
Fixed income | Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 25.00% | |||
Fixed income | Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 100.00% | |||
Cash and cash equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 25.00% | |||
Other Investment | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit asset allocation, maximum | 20.00% |
Defined Benefit Plans - Obligat
Defined Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in the Projected Benefit Obligation (PBO): | ||||
Recognition of actuarial losses (gains) | $ 3.8 | $ (0.5) | $ 1.9 | |
Change in Plan Assets: | ||||
Beginning balance | 656.6 | |||
Ending balance | 599.6 | 656.6 | ||
Pension Benefits [Member] | ||||
Change in the Projected Benefit Obligation (PBO): | ||||
Projected benefit obligation at beginning of year | 832.4 | 791.7 | ||
Service cost | 0.5 | 0.6 | ||
Interest cost | 30.7 | 33.3 | ||
Recognition of actuarial losses (gains) | (63.1) | 40.6 | ||
Benefits paid | (37.3) | (33.8) | ||
Projected benefit obligation at end of year | 763.2 | 832.4 | 791.7 | |
Accumulated benefit obligation at end of year (excludes the impact of future compensation increases) | 763.2 | 832.4 | ||
Change in Plan Assets: | ||||
Beginning balance | 656.6 | 577.7 | ||
Actual return on plan assets | (30.7) | 83.2 | ||
Employer contributions | 11 | 29.5 | ||
Benefits paid | (37.3) | (33.8) | ||
Ending balance | 599.6 | 656.6 | 577.7 | |
Funded status (Fair value of plan assets less PBO) | (163.6) | (175.8) | ||
Postretirement Benefits [Member] | ||||
Change in the Projected Benefit Obligation (PBO): | ||||
Projected benefit obligation at beginning of year | 1.6 | 3.6 | ||
Recognition of actuarial losses (gains) | $ 0.9 | (0.2) | (1.4) | |
Benefits paid | (0.4) | |||
Foreign exchange | (0.2) | |||
Projected benefit obligation at end of year | 1.4 | 1.6 | $ 3.6 | |
Change in Plan Assets: | ||||
Employer contributions | 0.5 | |||
Benefits paid | (0.5) | |||
Funded status (Fair value of plan assets less PBO) | $ (1.4) | $ (1.6) |
Defined Benefit Plans - Amounts
Defined Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ (163.3) | $ (175.9) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current benefit payment liability | (1.5) | (1.1) |
Accrued benefit liability | (162.1) | (174.7) |
Net amount recognized | (163.6) | (175.8) |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current benefit payment liability | (0.2) | (0.2) |
Accrued benefit liability | (1.2) | (1.4) |
Net amount recognized | $ (1.4) | $ (1.6) |
Defined Benefit Plans - Accumul
Defined Benefit Plans - Accumulated Benefit Obligation (Detail) - Accounting Standards Update 2017-07 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Decrease to operating income | $ (9.6) | $ (14.1) |
Cost of products sold [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Decrease to operating income | 7.5 | 8.5 |
Selling, general and administrative expenses [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Decrease to operating income | $ 2.1 | $ 5.6 |
Defined Benefit Plans - Amoun_2
Defined Benefit Plans - Amounts in Accumulated Other Comprehensive loss that have not yet been Recognized as Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial (gains) losses | $ 3.8 | $ (0.5) | $ 1.9 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial (gains) losses | (63.1) | 40.6 | ||
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial (gains) losses | $ 0.9 | (0.2) | (1.4) | |
Other Accumulated Other Comprehensive Income | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance | 67.2 | 73.4 | ||
Recognition of actuarial (gains) losses | (3.9) | (0.9) | ||
Current year actuarial loss (gain) | 8.5 | (5.3) | ||
Ending Balance | 71.8 | 67.2 | $ 73.4 | |
Total at December 31, 2018 | 71.8 | |||
Other Accumulated Other Comprehensive Income | Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial (gains) losses | 0.1 | 1.4 | ||
Current year actuarial loss (gain) | (0.4) | (1.4) | ||
Ending Balance | $ (0.3) | |||
Beginning Balance | (5.1) | |||
Amortization | 5.1 | |||
Total at December 31, 2018 | $ (0.3) |
Defined Benefit Plans - Compone
Defined Benefit Plans - Components of Net Periodic Benefit Cost for Pension and Postretirement Benefits (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial losses (gains) | $ 3.8 | $ (0.5) | $ 1.9 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.5 | 0.6 | ||
Interest cost | 30.7 | 33.3 | ||
Recognition of actuarial losses (gains) | (63.1) | 40.6 | ||
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of actuarial losses (gains) | $ 0.9 | (0.2) | (1.4) | |
Net Periodic Benefit Cost | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.5 | 0.6 | 9.6 | |
Interest cost | 30.7 | 33.3 | 34.4 | |
Expected return on plan assets | (41) | (37.3) | (37.2) | |
Recognition of actuarial losses (gains) | 3.9 | 0.9 | ||
Net periodic benefit (income) cost | (5.9) | (2.5) | 6.8 | |
Net Periodic Benefit Cost | Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.3 | |||
Recognition of actuarial losses (gains) | (0.1) | (1.4) | 1.9 | |
Amortization of prior service credits | (5.1) | (13.5) | ||
Net periodic benefit (income) cost | $ (0.1) | $ (6.5) | $ (11.3) |
Defined Benefit Plans - Schedul
Defined Benefit Plans - Schedule of Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits [Member] | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||
Discount rate | 4.40% | 3.80% | 4.30% |
Rate of compensation increase | 4.00% | ||
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||
Discount rate | 3.80% | 4.30% | 4.60% |
Expected long-term rate of return on plan assets | 6.00% | 6.40% | 6.60% |
Rate of compensation increase | 4.00% | ||
Postretirement Benefits [Member] | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31: | |||
Discount rate | 4.20% | 3.40% | 3.40% |
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31: | |||
Discount rate | 3.40% | 3.40% | 4.10% |
Defined Benefit Plans - Assumed
Defined Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations and Net Cost (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next year | 1.00% | |||
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Rate that the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | ||
Year that the rate reaches the ultimate trend rate | 2,027 | 2,026 | ||
Postretirement Benefits [Member] | Pre Age Sixty Five | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next year | [1] | 6.90% | 7.10% | |
Postretirement Benefits [Member] | Post Age Sixty Five | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next year | [1] | 8.00% | 8.40% | |
[1] | The pre-65 initial health care cost trend rate is shown first / followed by the post-65 rate. |
Defined Benefit Plans - Effect
Defined Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total of service and interest cost, 1-Percentage-Point Increase | $ (0.1) |
Effect on total of service and interest cost, 1-Percentage-Point Decrease | $ 0.1 |
Defined Benefit Plans - Fair Va
Defined Benefit Plans - Fair Value of Pension Assets by Major Category of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 599.6 | $ 656.6 | |
Group annuity/insurance contracts (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 23.6 | 23.3 | $ 22.8 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 7.7 | 12.5 | |
Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 197.7 | 285.9 | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 324.6 | 277.7 | |
Multi-strategy hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 22 | 24.6 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 24 | $ 32.6 |
Defined Benefit Plans - Reconci
Defined Benefit Plans - Reconciliation of Level Three Measurements (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 656.6 | |
Ending balance | 599.6 | $ 656.6 |
Group annuity/insurance contracts (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 23.3 | 22.8 |
Actual return on assets related to assets still held | 0.3 | 0.5 |
Ending balance | $ 23.6 | $ 23.3 |
Defined Benefit Plans - Sched_2
Defined Benefit Plans - Schedule of Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 39.4 |
2,020 | 41 |
2,021 | 42.1 |
2,022 | 43.4 |
2,023 | 44.4 |
Years 2024-2028 | 234.7 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | 0.1 |
2,023 | 0.1 |
Years 2024-2028 | $ 0.3 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Income Before Income Taxes and Noncontrolling Interests (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Income Before Income Tax [Line Items] | |||
Domestic operations | $ 456.7 | $ 554.7 | $ 513.8 |
Foreign operations | 80.3 | 80.1 | 68.3 |
Income before income taxes and noncontrolling interests | $ 537 | $ 634.8 | $ 582.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Reconciliation of income taxes | 21.00% | 35.00% | 35.00% | |
Income taxes, estimated net benefit | $ 25,700,000 | |||
Unrecognized tax benefits that would impact effective tax rate | $ 64,300,000 | |||
Unrecognized tax expense (benefits), interest and penalty expense (benefit) recognized | 2,200,000 | $ 2,000,000 | $ 1,100,000 | |
Unrecognized tax benefits, accrued interest and penalties | 14,400,000 | $ 11,800,000 | ||
Deferred tax assets, net operating losses and other tax carryforwards | 25,600,000 | 21,200,000 | 25,600,000 | |
Deferred tax assets, net operating losses and other tax carryforwards | 7,100,000 | |||
Undistributed earnings of foreign subsidiaries | 128,100,000 | |||
Reduction in deferred tax liabilities | $ 157,400,000 | 150,700,000 | $ 157,400,000 | |
Repatriation tax liability | 28,500,000 | |||
Increase In Provision For Tax | 8,200,000 | |||
Adjustments to deferred tax liabilty | 5,500,000 | |||
Deferred tax liabilities of Foreign Subsidiaries | 5,000,000 | |||
Federal Income Tax Rate [Member] | ||||
Income Taxes [Line Items] | ||||
Reduction in deferred tax liabilities | 62,400,000 | |||
Foreign and State Tax [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax liability for foreign and state taxes | 9,300,000 | |||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits | $ 1,400,000 | |||
Deferred tax assets, remaining net operating losses and other tax carryforwards expiration period | 2,023 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits | $ 3,500,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes at Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Of Income Taxes [Line Items] | |||
Income tax expense computed at federal statutory income tax rate | $ 112.8 | $ 222.2 | $ 203.7 |
Other income taxes, net of federal tax benefit | 13.7 | 13.4 | 12.6 |
Foreign taxes at a different rate than U.S. federal statutory income tax rate | 3.5 | (8.3) | (7.6) |
Tax benefit on income attributable to domestic production activities | 0 | (10.9) | (13) |
Net adjustments for uncertain tax positions | 4.1 | 11.6 | 13.2 |
Share-based compensation (ASU 2016-09) | (2.1) | (23.9) | (27.8) |
Tax Act impact | 5.5 | (25.7) | |
Deferred tax impact of state tax rate changes | 3.5 | (2) | (1.1) |
Valuation allowance increase (decrease) | 3 | (5.2) | (2.1) |
Miscellaneous other, net | 3 | (11.7) | (8.2) |
Income tax expense as reported | $ 147 | $ 159.5 | $ 169.7 |
Effective income tax rate | 27.40% | 25.10% | 29.20% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Unrecognized tax benefits — beginning of year | $ 87.5 | $ 58.2 | $ 38.2 |
Gross additions — current year tax positions | 9.1 | 31 | 10.7 |
Gross additions — prior year tax positions | 9.3 | 10.9 | 10.4 |
Gross additions (reductions) — purchase accounting adjustments | 1 | 4 | 9.7 |
Gross reductions — prior year tax positions | (14.5) | (9.4) | (9.8) |
Gross reductions — settlements with taxing authorities | (8.9) | (7.2) | (1) |
Unrecognized tax benefits — end of year | $ 83.5 | $ 87.5 | $ 58.2 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 93.5 | $ 133.1 | $ 150.4 |
Foreign | 26.4 | 22.4 | 22.3 |
State and other | 24.1 | 22.8 | 22.9 |
Deferred | |||
Federal, state and other | 4.8 | (27.2) | (23.9) |
Foreign | (1.8) | 8.4 | (2) |
Income tax expense as reported | $ 147 | $ 159.5 | $ 169.7 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Compensation and benefits | $ 31.5 | $ 22.1 |
Defined benefit plans | 39.3 | 43.7 |
Capitalized inventories | 16.1 | 11.1 |
Accounts receivable | 5.4 | 7.8 |
Other accrued expenses | 55.2 | 45.6 |
Net operating loss and other tax carryforwards | 21.2 | 25.6 |
Valuation allowance | (13.3) | (11) |
Miscellaneous | 2.5 | 3.7 |
Total deferred tax assets | 157.9 | 148.6 |
Deferred tax liabilities: | ||
LIFO inventories | 0 | (4.2) |
Fixed assets | (60.2) | (44.5) |
Intangible assets | (224.6) | (232) |
Investment in partnership | (3.8) | (9.2) |
Miscellaneous | (20) | (16.1) |
Total deferred tax liabilities | (308.6) | (306) |
Net deferred tax liability | (150.7) | (157.4) |
Other assets | 11.9 | 9.4 |
Deferred income taxes | $ (162.6) | $ (166.8) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Pre-tax Restructuring and Other Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | ||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 24.1 | $ 8.3 | $ 13.9 | ||||
Total Charges | 35.4 | [2] | 18.5 | [1],[3] | 19.3 | ||
Cost of products sold [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | 12.1 | [2] | 7.2 | [1],[3] | 4.5 | ||
Selling, general and administrative Expenses [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | [3] | (0.8) | [2] | 3 | [1] | 0.9 | |
Operating Segments [Member] | Cabinets [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 16.8 | [2] | 1.4 | [1],[3] | 1.8 | ||
Total Charges | 26.2 | [2] | 5.2 | [1],[3] | 1.8 | ||
Operating Segments [Member] | Plumbing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 2.6 | [2] | 2.8 | [1],[3] | 1.6 | ||
Total Charges | 3.3 | [2] | 2.8 | [1],[3] | 2.1 | ||
Operating Segments [Member] | Doors & Security [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 4.7 | [2] | 4.1 | [1],[3] | 10.5 | ||
Total Charges | 5.9 | [2] | 10.5 | [1],[3] | 15.4 | ||
Operating Segments [Member] | Cost of products sold [Member] | Cabinets [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | 9.1 | [2] | 1.6 | [1],[3] | |||
Operating Segments [Member] | Cost of products sold [Member] | Plumbing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | 0.6 | [2] | 0.3 | ||||
Operating Segments [Member] | Cost of products sold [Member] | Doors & Security [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | 2.4 | [2] | 5.6 | [1],[3] | 4.2 | ||
Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Cabinets [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | [3] | 0.3 | [2] | 2.2 | [1] | ||
Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Plumbing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | [3] | 0.1 | [2] | 0.2 | |||
Operating Segments [Member] | Selling, general and administrative Expenses [Member] | Doors & Security [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other Charges | [3] | $ (1.2) | [2] | $ 0.8 | [1] | $ 0.7 | |
[1] | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||
[2] | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, write-off of displays from exiting a customer relationship, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||||
[3] | Selling, general and administrative expenses. |
Restructuring and Other Charg_4
Restructuring and Other Charges - Reconciliation of Restructuring Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | $ 5.8 | $ 3 | |||
Provision | 24.1 | 8.3 | $ 13.9 | [1] | |
Cash Expenditures | [2] | (18.7) | (5.2) | ||
Non-Cash Write-offs | [3] | (0.7) | (0.3) | ||
Ending Balance | 10.5 | 5.8 | 3 | ||
Workforce Reduction Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 5 | 2.4 | |||
Provision | 21.4 | 6.7 | |||
Cash Expenditures | [2] | (16.3) | (3.9) | ||
Non-Cash Write-offs | [3] | (0.2) | (0.2) | ||
Ending Balance | 9.9 | 5 | 2.4 | ||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 0.8 | 0.6 | |||
Provision | 2.7 | 1.6 | |||
Cash Expenditures | [2] | (2.4) | (1.3) | ||
Non-Cash Write-offs | [3] | (0.5) | (0.1) | ||
Ending Balance | $ 0.6 | $ 0.8 | $ 0.6 | ||
[1] | “Other Charges” represent charges or gains directly related to restructuring initiatives that cannot be reported as restructuring under GAAP. Such charges or gains may include losses on disposal of inventories, trade receivables allowances from exiting product lines, accelerated depreciation resulting from the closure of facilities, and gains and losses on the sale of previously closed facilities. | ||||
[2] | Cash expenditures primarily related to severance charges. | ||||
[3] | Non-cash write-offs include long-lived asset impairment charges attributable to restructuring actions. |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitment And Contingencies [Line Items] | |||
Purchase obligations | $ 369.9 | ||
Purchase obligations due in one year | 342.4 | ||
Operating leases, rent expense net | $ 48.4 | $ 42.1 | $ 43.5 |
Commitments - Future Minimum Re
Commitments - Future Minimum Rental Payments under Non-Cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Schedule of Operating Leases [Line Items] | |
2,019 | $ 37.8 |
2,020 | 29.6 |
2,021 | 23.4 |
2,022 | 18.9 |
2,023 | 13.8 |
Remainder | 58.8 |
Total minimum rental payments | $ 182.3 |
Commitments - Activity Related
Commitments - Activity Related to Product Warranty Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranty Liability [Line Items] | |||
Reserve balance at the beginning of the year | $ 17.2 | $ 16.2 | $ 16 |
Provision for warranties issued | 25.1 | 25.1 | 25.8 |
Settlements made (in cash or in kind) | (25.7) | (24.3) | (25.5) |
Acquisition | 8.9 | 0.3 | |
Foreign currency | (0.6) | 0.2 | (0.4) |
Reserve balance at end of year | $ 24.9 | $ 17.2 | $ 16.2 |
Information on Business Segme_3
Information on Business Segments - Net Sales and Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | $ 1,420.7 | $ 1,380.8 | $ 1,429 | $ 1,254.6 | $ 1,382.5 | $ 1,348.6 | $ 1,365.4 | $ 1,186.8 | $ 5,485.1 | [1] | $ 5,283.3 | [1] | $ 4,984.9 | [1] | ||
Operating income | 140.1 | $ 147.1 | $ 188.6 | $ 119.4 | 162.8 | $ 199.5 | $ 209.2 | 111 | 595.2 | 682.5 | 618.6 | |||||
Property, plant and equipment, net | 813.4 | [2] | 740 | 813.4 | [2] | 740 | 662.5 | |||||||||
Long-lived asset impairment | $ (3) | |||||||||||||||
Assets | 5,964.6 | 5,511.4 | 5,964.6 | 5,511.4 | 5,128.5 | |||||||||||
Depreciation expense | 113.5 | 98.6 | 94.6 | |||||||||||||
Amortization of intangible assets | 36.1 | 31.7 | 28.1 | |||||||||||||
Capital expenditures, gross | [3] | 150.1 | 165 | 149.3 | ||||||||||||
Less: proceeds from disposition of assets | (6.1) | (0.4) | (3.9) | |||||||||||||
Capital expenditures, net | 144 | 164.6 | 145.4 | |||||||||||||
Corporate [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Operating income | [4],[5] | (79.2) | (90.1) | (80.5) | ||||||||||||
General and administrative expense | (79.2) | (85) | (80.5) | |||||||||||||
Long-lived asset impairment | (5.1) | |||||||||||||||
Total Corporate expenses | (79.2) | (90.1) | (80.5) | |||||||||||||
Assets | 176.8 | 208.8 | 176.8 | 208.8 | 157.2 | |||||||||||
Depreciation expense | 3.3 | 3 | 3.7 | |||||||||||||
Capital expenditures, gross | 0.6 | 18 | 0.5 | |||||||||||||
United States [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | [1] | 4,606.6 | 4,492.2 | 4,258.5 | ||||||||||||
Property, plant and equipment, net | 628.9 | 562.3 | 628.9 | 562.3 | 499.8 | |||||||||||
Canada | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | [1] | 433.1 | 427.6 | 406.4 | ||||||||||||
Property, plant and equipment, net | 46 | 50.5 | 46 | 50.5 | 45.5 | |||||||||||
China | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | [1] | 260.6 | 202.3 | 175 | ||||||||||||
Property, plant and equipment, net | 22.5 | 24.8 | 22.5 | 24.8 | 22.7 | |||||||||||
Other International | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | [1] | 184.8 | 161.2 | 145 | ||||||||||||
Property, plant and equipment, net | 12.6 | 13.4 | 12.6 | 13.4 | 3.7 | |||||||||||
Mexico | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Property, plant and equipment, net | 103.4 | 89 | 103.4 | 89 | 90.8 | |||||||||||
Cabinets [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Assets | 2,318.7 | 2,416.3 | 2,318.7 | 2,416.3 | 2,349.4 | |||||||||||
Depreciation expense | 50.9 | 42.8 | 40.1 | |||||||||||||
Amortization of intangible assets | 19.6 | 19.7 | 18.4 | |||||||||||||
Capital expenditures, gross | 73.8 | 63.4 | 61.7 | |||||||||||||
Cabinets [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | 2,418.6 | 2,467.1 | 2,397.8 | |||||||||||||
Operating income | 143.5 | 267.2 | 257.8 | |||||||||||||
Plumbing [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Assets | 1,943.1 | 1,854.1 | 1,943.1 | 1,854.1 | 1,626.8 | |||||||||||
Depreciation expense | 29.1 | 26.9 | 24.6 | |||||||||||||
Amortization of intangible assets | 10.4 | 7.7 | 3.6 | |||||||||||||
Capital expenditures, gross | 41.4 | 43.5 | 48.3 | |||||||||||||
Plumbing [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | 1,883.3 | 1,720.8 | 1,534.4 | |||||||||||||
Operating income | [5] | 375.3 | 358.5 | 314.9 | ||||||||||||
Doors & Security [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Assets | $ 1,526 | $ 1,032.2 | 1,526 | 1,032.2 | 995.1 | |||||||||||
Depreciation expense | 30.2 | 25.9 | 26.2 | |||||||||||||
Amortization of intangible assets | 6.1 | 4.3 | 6.1 | |||||||||||||
Capital expenditures, gross | 34.3 | 40.1 | 38.8 | |||||||||||||
Doors & Security [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||
Net sales | 1,183.2 | 1,095.4 | 1,052.7 | |||||||||||||
Operating income | [5] | $ 155.6 | $ 146.9 | $ 126.4 | ||||||||||||
[1] | Based on country of destination | |||||||||||||||
[2] | 2018 includes the impact of acquiring Fiberon. See Note 4 for additional information. | |||||||||||||||
[3] | Capital expenditures of $16.7 million, $17.2 million and $11.9 million that have not been paid as of December 31, 2018, 2017 and 2016, respectively, were excluded from the Statement of Cash Flows. | |||||||||||||||
[4] | (a) Below is a table detailing Corporate expenses: | |||||||||||||||
[5] | We revised our previously reported results in 2017 and 2016 for ASU 2017-07, Presentation of Net Periodic and Postretirement Costs and to reflect our new Doors & Security segment resulting from the reorganization we announced in July 2018. |
Information on Business Segme_4
Information on Business Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Number of customers accounted for greater than 10% of net sales | 2 | 2 | 2 |
Customer Concentration Risk | Net Sales | The Home Depot, Inc. | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Percentage of net sales to major customer | 13.00% | 13.00% | 13.00% |
Customer Concentration Risk | Net Sales | Lowe's Companies, Inc | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Percentage of net sales to major customer | 14.00% | 14.00% | 14.00% |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||||||||||||||
Net sales | $ 1,420.7 | $ 1,380.8 | $ 1,429 | $ 1,254.6 | $ 1,382.5 | $ 1,348.6 | $ 1,365.4 | $ 1,186.8 | $ 5,485.1 | [1] | $ 5,283.3 | [1] | $ 4,984.9 | [1] | ||||
Gross profit | 501.8 | 493.9 | 524.1 | 439.6 | 492.3 | [2] | 505.3 | [2] | 513.3 | [2] | 414.1 | [2] | 1,959.4 | 1,925 | [2] | |||
Operating income | 140.1 | 147.1 | 188.6 | 119.4 | 162.8 | 199.5 | 209.2 | 111 | 595.2 | 682.5 | 618.6 | |||||||
Income from continuing operations, net of tax | 85.3 | 99.9 | 129.7 | 75.1 | 128 | 129.6 | 140.3 | 77.4 | 390 | 475.3 | 412.4 | |||||||
Income (loss) from discontinued operations, net of tax | (0.2) | (2.6) | (0.2) | (2.6) | 0.8 | |||||||||||||
Net income | 85.3 | 99.9 | 129.7 | 74.9 | 128 | 129.6 | 137.7 | 77.4 | 389.8 | 472.7 | $ 413.2 | |||||||
Net income attributable to Fortune Brands | $ 85.2 | $ 99.8 | $ 129.6 | $ 75 | $ 128 | $ 129.5 | $ 137.7 | $ 77.4 | $ 389.6 | $ 472.6 | ||||||||
Basic earnings (loss) per common share | ||||||||||||||||||
Continuing operations | $ 0.60 | $ 0.70 | $ 0.89 | $ 0.50 | $ 0.84 | $ 0.84 | $ 0.91 | $ 0.50 | $ 2.69 | $ 3.10 | $ 2.67 | |||||||
Discontinued operations | (0.02) | (0.02) | 0.01 | |||||||||||||||
Net income attributable to Fortune Brands | 0.60 | 0.70 | 0.89 | 0.50 | 0.84 | 0.84 | 0.89 | 0.50 | 2.69 | 3.08 | 2.68 | |||||||
Diluted earnings (loss) per common share | ||||||||||||||||||
Continuing operations | 0.60 | 0.69 | 0.88 | 0.49 | 0.83 | 0.83 | 0.90 | 0.50 | 2.66 | 3.05 | 2.61 | |||||||
Discontinued operations | (0.02) | (0.02) | 0.01 | |||||||||||||||
Net income attributable to Fortune Brands | $ 0.60 | $ 0.69 | $ 0.88 | $ 0.49 | $ 0.83 | $ 0.83 | $ 0.88 | $ 0.50 | $ 2.66 | $ 3.03 | $ 2.62 | |||||||
[1] | Based on country of destination | |||||||||||||||||
[2] | Amounts revised to reflect adoption of ASU 2017-07 “Presentation of Net Periodic Pension and Postretirement Costs.” |
Quarterly Financial Data - Addi
Quarterly Financial Data - Additional Information (Detail) - Tradenames [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information [Line Items] | ||||||
Pre-tax defined benefit plan actuarial gains (losses) | $ 3.5 | $ 0.3 | $ (0.8) | $ 1.3 | $ 3.8 | $ 0.5 |
After-tax defined benefit plan actuarial gains (losses) | $ 2.8 | $ 0.2 | $ (0.5) | $ 0.9 |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Income from continuing operations, net of tax | $ 85.3 | $ 99.9 | $ 129.7 | $ 75.1 | $ 128 | $ 129.6 | $ 140.3 | $ 77.4 | $ 390 | $ 475.3 | $ 412.4 |
Less: Noncontrolling interests | 0.2 | 0.1 | |||||||||
Income from continuing operations for EPS | 389.8 | 475.2 | 412.4 | ||||||||
Income (loss) from discontinued operations | (0.2) | (2.6) | 0.8 | ||||||||
NET INCOME ATTRIBUTABLE TO FORTUNE BRANDS | $ 389.6 | $ 472.6 | $ 413.2 | ||||||||
Basic | |||||||||||
Continuing operations | $ 0.60 | $ 0.70 | $ 0.89 | $ 0.50 | $ 0.84 | $ 0.84 | $ 0.91 | $ 0.50 | $ 2.69 | $ 3.10 | $ 2.67 |
Discontinued operations | (0.02) | (0.02) | 0.01 | ||||||||
Net income attributable to Fortune Brands common stockholders | 0.60 | 0.70 | 0.89 | 0.50 | 0.84 | 0.84 | 0.89 | 0.50 | 2.69 | 3.08 | 2.68 |
Diluted | |||||||||||
Continuing operations | 0.60 | 0.69 | 0.88 | 0.49 | 0.83 | 0.83 | 0.90 | 0.50 | 2.66 | 3.05 | 2.61 |
Discontinued operations | (0.02) | (0.02) | 0.01 | ||||||||
Net income attributable to Fortune Brands common stockholders | $ 0.60 | $ 0.69 | $ 0.88 | $ 0.49 | $ 0.83 | $ 0.83 | $ 0.88 | $ 0.50 | $ 2.66 | $ 3.03 | $ 2.62 |
Basic average shares outstanding | 144.6 | 153.2 | 154.3 | ||||||||
Stock-based awards | 1.8 | 2.6 | 3.5 | ||||||||
Diluted average shares outstanding | 146.4 | 155.8 | 157.8 | ||||||||
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share | 1.5 | 0.5 | 0.5 |
Other Income, Net - Components
Other Income, Net - Components of Other Expense Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Component Of Other Expense Income Nonoperating [Line Items] | ||||
Defined benefit plan | [1] | $ (6.5) | $ (9.6) | $ (14.2) |
Asset impairment charge | 7 | |||
Foreign currency (gains)/losses | (2) | 0.9 | 2.8 | |
Ineffective portion of cash flow hedge | (3.8) | |||
Other items, net | (4) | (1.2) | ||
Total other income, net | $ (16.3) | $ (1.7) | $ (12.6) | |
[1] | Amounts revised to reflect adoption of ASU 2017-07 “Presentation of Net Periodic Pension and Postretirement Costs.” |
Other Income, Net - Additional
Other Income, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Component Of Other Expense Income Nonoperating [Line Items] | ||
Impairment charge | $ 7 | |
Other Assets [Member] | ||
Component Of Other Expense Income Nonoperating [Line Items] | ||
Ineffective Prtion Of Cash Flow Hedges | $ 3.8 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accruals, relating to environmental compliance and clean up | $ 0.6 | $ 0.7 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for cash discounts, returns and sales allowances | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 84 | $ 68.2 | $ 50.3 | |
Charged to Expense | 216.1 | 205.7 | 148.6 | |
Reclassifications | [1] | (16) | 3 | |
Write-offs, and Deductions | [2] | 199.5 | 192.9 | 130.7 |
Balance at End of Period | 84.6 | 84 | 68.2 | |
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 3.3 | 7.4 | 5.8 | |
Charged to Expense | 1.5 | 0.2 | 4.3 | |
Write-offs, and Deductions | [2] | 1.4 | 4.5 | 2.7 |
Business Acquisition | [3] | 0.3 | 0.2 | |
Balance at End of Period | 3.7 | 3.3 | 7.4 | |
Allowance for deferred tax assets | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 11 | 16.4 | 19.7 | |
Charged to Expense | 2.3 | (5.4) | (3.3) | |
Balance at End of Period | $ 13.3 | $ 11 | $ 16.4 | |
[1] | Represents reclassification of reserve for returns to a separate liability account due to our adoption of the revenue recognition standard and a reclassification of sales allowances to certain customer program liabilities across all segments during 2018. 2017 represents a reclassification of certain customer program liabilities to sales allowances (reduction to accounts receivable) in the Doors & Security segment. | |||
[2] | Net of recoveries of amounts written off in prior years and immaterial foreign currency impact. | |||
[3] | Represents purchase accounting adjustment related to the Fiberon acquisition within our Doors and Security segment in 2018. 2017 represents a valuation allowance on an acquired net operating loss carryforward (Norcraft Canada). |